But that is not the case.
Weekly shifts in the USA crude stocks are being increasingly influenced by worldwide trade and this was certainly the case with this week's data, Jim Ritterbusch, president of Ritterbusch and Associates said in a note.
The reason behind Trump's sensitivity about oil is the by-elections of the US Congress. However, I certainly believe that the market will be targeting this level. Not too many years ago, that would have seemed to have been impossible by many who lacked the imagination and drive of those in the USA energy industry. Several European nations have requested a waiver from US sanctions on Iran already, which would have allowed European companies in certain strategic sectors to continue to operate in the country. In recent history, OPEC supply restrictions are having a more limited impact on the commodity thanks to increasing supply from Saudi Arabia, Russia and Libya. OPEC stands for the Organization of the Petroleum Exporting Countries, after all.
Prices rose 74c on Wednesday to close at $72.90. -Chinese trade war that could dampen prices and demand were " oversold".
Oil prices rallied on Wednesday afternoon despite compliance falling, said OilPrice.com.
The bank says crude could hit $80 a barrel, but not until later in the year. Then, they soared again, generally remaining above $100 a barrel between 2011 and mid-2014, only to tumble down all the way to about $30 in January of 2016.
"Stable and balanced markets are the ideal market form for both producers and consumers, and just as Saudi Arabia would not like to see unmet customer demand, an oversupplied market repels potential investment in the oil industry, curtailing future supply and contributing to volatility", he added. We suppose bunker prices will change irregular and will be rather volatile next week. Among Korean oil refiners, SK Energy Co. and Hyundai Oilbank Co. import crude oil from Iran.
Decisions that disrupt oil markets sometimes serve geopolitical considerations. Most important, the uncertainty over how the USA will treat Iran sanctions has led to a spike in volatility.
This shortfall would cause countries in the region to have to look to other suppliers to fill in the gap. If these trends continue, the price of USA crude could yet fall further.
Oil imports from Iran totaled about $9 billion in the year ended March and substituting some of the contracts with more North American crude will help India lower the $24.5 billion trade surplus it runs with the world's largest economy. The United States exported about 5.1 million barrels per day (bpd) of products through the second quarter, according to data from the U.S. Energy Information Administration. That being said, the USA still imports crude, which in 2017 accounted for 19 percent of total petroleum consumption.
OPEC now comprises a dozen oil producing nations, mainly in the Middle East, and the OPEC plus, a wider cartel of oil producing nations led by Russian Federation.
Earlier in the trading day, the us dollar hit its highest level against a basket of other currencies since July 2017, up half a percent on the day.
The federal structure of the US government additionally complicates the picture.
The US government is sensitive about hikes in oil prices on the threshold of the country's important by-elections.
For example, the USA could tap into emergency oil stockpiles stored in salt caverns along its Gulf Coast, also known as the Strategic Petroleum Reserves. "Price stability is in short supply and wild swings will be the norm so long as the supply backdrop remains clouded by uncertainty". This could create an unbalanced relationship between two countries, forcing Iran to be become over-reliant and dependant on China.
Lastly, Congress can play a role too.
Iran's oil exports reached 2.819 million barrels per day in 2017, up from 1.595 million barrels per day in 2015.