Oil rises 28 cents, after big drop in U.S. crude stockpiles

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"With oil producers" cartel OPEC playing havoc with prices, India discussed with China the possibility of forming an "oil buyers club' that can negotiate better terms with sellers as well as getting more U.S. crude oil to cut dominance of the oil block", India's Petroleum Ministry tweeted.

OPEC nation Iran said it expects the group to stick with its pact to restrain oil supply as world markets don't need more crude. "Not good!" Trump tweeted Wednesday morning. "Oil prices are artificially Very High!"

With output in Russian Federation rising back above 11 MMBPD in June, and Saudi production climbing to more than 10 MMBPD, supplies from all three top producers are increasing. The block accounted for about 83 per cent of India's total crude oil imports, 98 per cent of its LPG imports and 74 per cent of its LNG imports during the last financial year ended March 31, 2018.

The OPEC Basket price per barrel of crude oil is $74.11.

But the president has not mentioned the tax increase idea in months as gas prices have steadily risen because of higher oil prices on the world market, eating into higher take-home pay that millions of American workers gained when Congress late previous year passed tax-cut legislation supported by Trump. They have shown discipline in limiting production since the start of past year, helping push up the benchmark price of global crude.

Shortly after Trump's tweet on Wednesday, Senate Minority Leader Charles E. Schumer, D-N.Y., took to Twitter to respond.

"Higher production in Saudi Arabia, Algeria and Iraq was partially offset by decreased crude oil production, mainly in Nigeria, Venezuela and Libya", the oil cartel said.

Brent crude oil LCOc1 lost 82 cents to trade at $75.92 a barrel by 11:32 a.m. (1532 GMT), while West Texas Intermediate crude CLc1 slipped 24 cents to $66.40.

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US crude output has risen nearly 30 percent in the last two years to a record high of 10.9 million barrels per day.

In 2017, OPEC began cutting about 1.8 million barrels per day to support the market.

OPEC and various non-OPEC oil producers are set to convene in Vienna later in the month to discuss future production.

"The independent show of WTI strength is merely a catchup process to the higher priced products and Brent values", Jim Ritterbusch, president of Ritterbusch and Associates said in a note.

The IEA meanwhile revised upwards its estimate for 2018 non-OPEC growth to 2 mb/d, and to 1.7 mb/d in 2019.

On Tuesday, the USA government's Energy Information Administration raised estimates for global oil demand in 2018. Given the backing of the two largest producers participating in the accord, an output increase " looks inevitable" Citigroup analysts led by Ed Morse said in a report on Tuesday.

But OPEC, Russia and others have said any increase in output would be made gradually.

In the United States, rising gasoline prices have threatened to blunt other economic headwinds.

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