The growing importance of USA oil production is likely changing how OPEC producers think about responding to rising prices.
Trump is pressuring allies to stop buying Iranian oil as a tactic to make Iranian leaders negotiate a new nuclear deal, after he pulled out of the 2015 agreement two months ago.
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.
WASHINGTON-The Trump administration will consider requests for waivers from economic sanctions against Iran on a "case-by-case" basis, a senior State Department official said Monday, a step back from threats to insist on zero imports by a November 4 deadline.
"Yes, of course. That's what we're doing".
The private sector in Iran was allowed to export crude oil in a bid to thwart US sanctions, Iran's first vice president said here on Sunday.
But a flurry of USA announcements over the weekend unsettled oil markets.
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In the old days, OPEC members could count on long lead times for new oil projects to come online, meaning that tight markets and high prices could endure for years.
Saudi Arabia interprets the vague OPEC statement from the June meeting to ease compliance rates as implying that there will be indirectly a reallocation of quotas within the cartel. But with inventories already below five-year averages and little spare capacity available, oil markets look set to tighten.
The Trump Administration is shrugging off this fairly glaring flaw with their plan, with President Trump demanding Saudi Arabia simply produce far more oil to wholly replace Iran on the market. If oil ministers had not agreed to increase production, they understand that their gains would have been short-lived, and that they would give up market share when US production responds in six to nine months.
"We are working to minimize disruptions to the global market, but we are confident there is sufficient global spare oil capacity", Hook said.
Some major importers of Iranian crude have sent mixed signals on their willingness to abide United States sanctions, particularly as inventories remain low.
Iran possesses the second-largest gas reserves on the planet, after Russian Federation, and the fourth-largest oil supplies, while Saudi Arabia is the world's biggest oil exporter. "These sanctions will include targeting Iran's energy sector and petroleum-based transactions, and transactions with the Central Bank of Iran", Mr Hook said.
President Donald Trump lashed out at OPEC with a warning to stop manipulating oil markets and piled pressure on close U.S. allies in an interview that aired on Sunday with a threat to sanction European companies that do business with Iran.
The Iranian state TV broadcast his remarks. "We want to work with these countries to build a strong global effort", he said.