Saudi Arabia and Russian Federation, which led OPEC and partner countries in reaching last month's production deal, reaffirmed the agreement in statements on Tuesday, saying this will mean increasing oil output by 1 million barrels a day.
"We want to defeat America's efforts...to stop Iran's oil exports", said First Vice President Eshagh Jahangiri in a televised statement.
WITH Saudi Arabia expressing its ability to raise oil production by two million barrels in obedience to pressures from US President Donald Trump, there are fears that Federal Government's 2018 budget just recently signed by President Muhammadu Buhari may be in trouble.
Iran's OPEC governor Hossein Kazempour Ardebili said. "REDUCE PRICING NOW!" Trump wrote on Twitter.
"The Trump support base is probably the part of the US electorate that will be the most sensitive to an increase in USA gasoline prices", Halff said.
Hook declined to say if the kingdom can offer that additional supply, but the USA is "working to minimize disruptions to the global market", Hook said.
Saudi Arabia was producing 10 mb/d in May and recent reports suggest they might add as much as 800,000 bpd to 1 mb/d in July, a massive increase in such a short period of time.
Another development that could disrupt Texas oil prices is Mexico's recent election.
Last month the country led a decision by OPEC and its partners - including Russian Federation - to increase supply, following pressure from the U.S.to cap rising oil prices.
Oil prices rose on Tuesday after Libya declared force majeure on some of its crude exports, while the loss of Canadian supplies helped lifted USA crude to 3-1/2-year highs. The hike in price has created difficulties for all countries especially states like Pakistan that depend heavily on oil imports.
Hook said more than 50 worldwide firms have already announced their intention to leave the Iranian market, especially in the energy and financial sectors.
He explained that it was hard to anticipate how the market would integrate with a possible increase in crude oil output from major producers, referring to Saudi Arabia and Russian Federation.
The president also had tough words for other United States allies.
His announcement was a delicate attempt at reassuring oil markets and allies that sanctions are not likely to hit them this fall - even if Iranian oil continues to flow around the world, as is likely the case. "Our brothers in Saudi Arabia are a proud Muslim nation, educated and mature who do not let you talk with such rhetoric". He also called on the United States to join world powers in a meeting with Iran in Vienna on Friday.
US crude stockpiles are forecast to have declined 5 million barrels last week, according to a Bloomberg survey ahead of government data released on Thursday. The OPEC quota in this agreement is 1.2 mln barrels.
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