Oil prices dropped on Monday as supplies from Saudi Arabia and Russian Federation increased and the market continued to absorb the impact of US President Donald Trump's weekend tweets - although analysts expect the decline to be short-lived.
This increase was needed to cope with the "turmoil and dysfunction in Iran and Venezuela", Trump said, referring to United States plans to impose new sanctions on Iran and low oil production in the South American country.
The White House later walked back the president's comments, saying the king said his country can raise oil production if needed. "Since Venezuela and Libya failed to produce, OPEC countries made a decision to increase their output by one million barrels to compensate", Sonatrach's CEO noted, adding: "This is why prices stand at the same level".
Rouhani's visit comes almost two months after US President Donald Trump unilaterally pulled out of the nuclear agreement, to the ire of the other signatories - China, France, Germany, the United Kingdom and Russian Federation - which along with the European Union have continued to back the accord.
Trump said on Fox News' "Sunday Morning Futures" that European companies will face consequences as a result of the USA withdrawing from the Iran nuclear deal.More news: Trump blasts OPEC, warns European companies against business with Iran
He also suggested, however, that there would be some legroom with other countries that import Iranian oil from avoiding immediate sanctions, once they are set to be re-imposed come November 4. "They seek to push Iranian exports of crude, condensate, and oil products to zero", energy consultancy FGE said in a note.
On Fox, Trump directed blame at the Organization of the Petroleum Exporting Countries, of which Saudi Arabia is the biggest producer. Trump will leave for a trip to Europe later this month for a meeting with North Atlantic Treaty Organisation allies, whom he has criticised sharply for paying too little for their joint defence.
In a briefing with reporters, that official said Washington probably would not grant waivers from secondary sanctions against foreign companies that continue to do business with Iran.
The global oil benchmark Brent traded at a premium of $3.68 a barrel to Dubai crude on Monday, down from an nearly four-year high of $4.61 a barrel in April, according to data from broker PVM Oil Associates.