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Saudis, Russia to Talk Output Boost Ahead of OPEC Summit

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"We have looked at a scenario, not a forecast, showing that by the end of next year output from these two countries (Venezuela and Iran) could be 1.5 mb/d (million barrels per day) lower than it is today", it said in a report.

US President Donald Trump has reignited his spat with the world's largest oil producers as surging oil prices take their toll on US manufacturing and industry. "Not good!" Trump wrote in a post on Twitter on Wednesday after last raising the issue in April.

"More oil from OPEC plus is the base case", said Bjarne Schieldrop, analyst at Swedish bank SEB.

Oil prices edged higher on Wednesday, turning positive after USA government data showed a bigger weekly draw than expected in domestic crude inventories along with unexpected declines in gasoline and distillate stocks.

Longer term, the market could tighten as demand increases if OPEC fails to cover supply shortfalls, the International Energy Agency said on Wednesday. OPEC reported in its monthly oil market report Tuesday, that Saudi Arabia has already increased production.

Trump's complaints about OPEC come amid expectations of a more costly United States summer driving season. Adding to their $500bil of losses since 2007.so if all production growth is unprofitable what makes oil prices high??

On Wednesday, the national average for a gallon of regular stood at $2.91, up 25 percent from a year ago, according to the AAA auto club.

Analysts attribute the rise in prices in part to OPEC's action to defend prices.

Yet, even with the 1.8 million-bpd production rollback, the total OPEC/non-OPEC level would still be around 1 million bpd below the October 2016 levels, because some producers, notably Saudi Arabia, have cut more than intended, while others, most notably Venezuela, have seen involuntary production declines and are unable to lift production, the person told Bloomberg.

"I think in the near future there will be time to release supply", Saudi Energy Minister Khalid Al-Falih said at the St. Petersburg International Economic Forum in Russian Federation in late May.

Saudi Arabia last month signaled it was ready to boost output in the second half of the year to ease consumer anxiety about higher prices, a policy U-turn for the kingdom that only weeks earlier advocated for production restraint.

"Oil prices have come up a lot, but we're not near $4 gasoline", Bordoff said.

Earlier this month, Bloomberg reported that the Trump administration asked OPEC and Russian Federation to boost oil output.

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