Iran vowed Sunday to defeat United States efforts to block its oil exports and warned rival producer Saudi Arabia it would never take Tehran's "place" on the worldwide oil market.
"Our goal is to increase pressure on the Iranian regime by reducing to zero its revenue on crude-oil sales", said Brian Hook, the State Department's director of policy planning, at a briefing with reporters.
The fall came as the Russian Energy Ministry said on Monday that the country's oil output increased to 11.06 million barrels per day in June from 10.97 million barrels per day in May.
Saudi Arabia doesn't seem to be in a rush to fulfill Trump's request for an extra 2 million barrels per day. "On balance, this leaves the oil market tighter than before, with less spare capacity".
In a tweet on Saturday, Trump said the extra Saudi oil would help offset a decline in supply from Iran, after the United States pulled out of the Iran nuclear deal in May and moved to reimpose oil sanctions.
Saudi Arabia's spare production capacity is estimated to be around 2 million barrels per day.
After reducing production by more than 1.8 million barrels daily since January a year ago to drain a global glut, the producers decided in Vienna on June 23 to reverse course.
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"Continuation of exporting oil is symbol of victory against the USA sanctions and I hope we would witness this great victory through planning by the Oil Ministry", the vice president explained.
Trump's plans to impose sanctions on Iran, coupled with low production from Venezuela and blockades on some ports in Libya have continued to tighten global supply, pushing up oil prices.
"Don't forget the one negative to the Iran deal is that you lose a lot of oil, and they got to make up for it". NY. "all eyes will be on that Cushing number".
During the cabinet meeting, King Salman also said millions of visitors performed Umrah rituals during the holy month of Ramadan easily and comfortably, and expressed his appreciation to all governmental and private sector employees for their efforts.
The Cabinet was briefed on Crown Prince Mohammed bin Salman's visit to Russian Federation.
WTI marked in a new high for 2018 at 74.80, and with crude nearing the critical 75.00 level bulls will be looking for a solid push, though the thin liquidity in the Asian markets could quickly see crude take a bearish turn, falling back into last week's swing low of 67.70.