Soon after that deal was struck, Trump announced that he had done a separate deal with Saudi Arabia to increase production by "maybe up to 2,000,000 barrels".
Shortly after, the White House backtracked on Trump's statement, saying that Riyadh is ready for measures aimed at stabilizing the oil market.
"In response to the President's assessment of a deficit in the oil market, King Salman affirmed that the Kingdom maintains a two million barrel per day spare capacity, which it will prudently use if and when necessary to ensure market balance", the statement said.
Iran's OPEC governor, Hossein Kazempour Ardebili, accused the U.S. and Saudi Arabia of trying to push up oil prices and said both countries are acting against the foundation of OPEC. "He has agreed", Trump tweeted on June 30.
The UAE's Abu Dhabi National Oil Co (ADNOC) said on Tuesday it could increase production by several hundred thousand bpd if needed.
After all, it's a supply and demand issue.
Traders said the decline in fuel inventories was largely down to the outage at Syncrude Canada's 360,000 barrels per day (bpd) oil sands facility near Fort McMurray, Alberta, which is expected to last through July.
Crude oil prices saw mixed activity today, widening the spread between WTI and Brent crude as Libya's oil production continues to suffer at the hands of the two rival NOC factions who are determined to duke it out.
Saudi Arabia's announcement on Tuesday comes just over a week since OPEC and non-OPEC producers including Russian Federation agreed to increase production by 1 million barrels per day from the start of this month. On Fox, Trump directed blame at the Organisation of Petroleum Exporting Countries, of which Saudi Arabia is a member.
The clash over OPEC policy and the resumption of USA sanctions on Iran has been amplified this week as Trump continues to target the group which he blames for rising prices.
President Trump has been demanding that the United States' closest ally in the Middle East, Saudi Arabia pump up more crude oil to ease pressure on rising price. He questioned whether Trump's words would do anything to reverse the effects on the market of declining Iranian oil production. The announcement sent oil prices soaring, and markets have been on edge since.
U.S. markets were jolted Tuesday morning as Crude Oil made a large downturn after touching $75 a barrel, a price not seen in four years.
OPEC and Russian Federation announced in June they were willing to raise output to address concerns of emerging supply shortages due to unplanned disruptions from Venezuela to Libya, and likely also to replace a potential fall in Iranian supplies due to USA sanctions. They're not back to their pre-2014 level, but oil prices hit a multi-year high on Monday, just below $79 a barrel.
The growing USA pressure on the world to totally stop buying Iranian oil has produced a warning from top Iranian officials that the world economy, and America's economy in particular, would pay a severe price from such a ban. "Iran. OK. You think of it. Iran is their big enemy, so they are going to have to do it", Trump said on Sunday in a Fox News interview.
OPEC together with a group of non-OPEC producers led by Russian Federation started to withhold output in 2017 to prop up prices.