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United States looks for support on Iran crude embargo

A woman shops in a supermarket in Doha Qatar

"Opec and non-Opec countries participating in the Declaration of Cooperation remain unwavering in their commitment to contribute to market stability, in the interests of producers, consumers and the global economy", Mazrouei said in a statement.

The vice president also noted that the "vulnerable" social layers should be helped after re-imposition of sanctions.

US crude stockpiles are forecast to have declined 5 million barrels last week, according to a Bloomberg survey ahead of government data to be released on Thursday.

Iran's President Hassan Rouhani on Tuesday said it was "unwise to imagine that some day all producer countries will be able to export their surplus oil and Iran will not be able to export its oil".

Iran shipped out over 2 million barrels per day of oil previous year, with Asia taking almost three quarter of the supply and the remainder heading to Europe. "So in the options market, the volatility gets bid up", he told the Reuters Global Oil Forum.

Iran announced on Sunday that it would permit private companies to export crude oil as Tehran attempts to thwart USA sanctions against the country's oil industry. Tehran, however, vowed on Sunday to foil any U.S. bid to block its oil exports.

Some key countries are reliant on Iranian oil imports, including India and Turkey.

Saudi Arabia agreed on Tuesday to make use of its spare production capacity to deal with changes in the level of supply and demand.

The U.S. government plans to shut Iran's oil exports out of the market from November, demanding that all countries stop buying its oil.

On Saturday, President Trump touted an agreement with Saudi King Salman bin Abdul Aziz to vastly increase oil production in an effort to lower prices.

The movement came after Iran reportedly threatened to disrupt oil shipments from the Middle East Gulf if Washington pressed ahead with sanctions against Iran.

There are also unconfirmed reports of the USA using its strategic reserves to send oil lower.

Craig added that more issues could develop as Washington tightens the sanctions noose on Iran and Venezuela.

Inventories at Cushing fell 2 million barrels last week, according to a separate forecast compiled by Bloomberg.

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.

While OPEC leader Saudi Arabia will pick up the slack, Morgan Stanley believes oil markets will be undersupplied by around 600,000 in the second half of 2018.

Mr Trump took another swing at his European allies saying they dealt unfairly with the USA over trade. "If production increases as we now forecast, a large share of this would be eroded, leaving the global oil market with a limited "margin of safety", said Morgan Stanley's Rat.