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Matthew Smith, the director of commodity research at ClipperData, told UPI that oil prices so far this week are moving on one hand on OPEC pledges of more production, but correcting later on fears of supply-side strains.

Traders have also been watching United States oil production, which has surged by 30 percent over the last two years to 10.9 million bpd, absorbing some of the recent disruptions.

The UAE's energy minister and current OPEC president for 2018, Suhail Al-Mazrouei, on Tuesday said that the UAE stood ready to help tackle any potential oil shortage, while underlining that OPEC will continue to adhere to "overall conformity levels" for the rest of 2018, according to Reuters report.

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.

"Just spoke to King Salman of Saudi Arabia and explained to him that, because of the turmoil & dysfunction in Iran and Venezuela, I am asking that Saudi Arabia increase oil production, maybe up to 2,000,000 barrels, to make up the difference", Trump wrote on Twitter.

US President Donald Trump speaks to the press after announcing his decision to withdraw from the nuclear deal with Iran during a speech from the Diplomatic Reception Room at the White House on May 8, 2018. "Prices to high! He has agreed!" "He has agreed", Trump tweeted on June 30. This will include allowing private companies to directly export the oil.

After reducing production by more than 1.8 million barrels daily since January past year to drain a global glut, the producers decided in Vienna on June 23 to reverse course. Analyst expectations were for a draw of 1 million barrels.

Iran says it will find ways to export its oil, despite what he does.

The agreement from Saudi Arabia is surprising as in recent months they have agreed with Russian Federation and other OPEC+ members to keep production relatively low.

"Also, taking a broad range of estimates from IEA, EIA and others, Saudi held spare capacity in the range of 1.3 - 2.1 mb/d when oil production was ~10 mb/d".

The quick drop after WTI reached US$75 might have been due to "a bout of long liquidation in front of the holiday", said Bill O'Grady, chief market strategist at Confluence Investment Management in St. Louis.


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