Saudis agree to pump more oil

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"Our resolution does not allow any member to produce more than their quota", Iran's OPEC governor Hossein Kazempour Ardebili said.

The cartel has indicated that a 100 percent match with the original production targets would result in a production increase of 1 million barrels per day relative to current levels.

OPEC and other oil producing countries, including Russian Federation, agreedthis month to amp up production by 1 million bpd starting July 1.

The news agency also reported Saturday that Saudi Energy Minister Khalid al-Falih said the kingdom will increase output by hundreds of thousands of barrels, with exact figures to be determined later. WTI on Thursday hit its highest since November 2014 at $74.03 per barrel. A trend reversal is expected only on a close below $64 a barrel. Average prices for unleaded gas, including taxes, averaged $2.83 a gallon for the week ending June 25 - up about 55 cents over the same period past year. Washington is telling buyers to stop all purchases of the country's crude, while Opec and its allies are bowing to United States pressure to raise output and fill the gap.

"We'll need more oil down the road and there'll be nowhere to get it", said Flynn, of the Price Futures Group. Last week, a source told Reuters that Saudi output would rise to 11 million bpd in July, a whole 1 million bpd above May.

North America's oil markets have tightened significantly as an outage of Canada's Syncrude has locked in over 300,000 bpd of production. OPEC and Russian Federation reached a complicated agreement during the talks, with OPEC agreeing to pump more oil - but perhaps not as much as some had expected.

The US president says King Salman agreed, although that claim remains unconfirmed by Riyadh.

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Vienna-based consultancy JBC Energy said the stronger the implementation and enforcement of USA sanctions, the higher the oil price will go. In January, OPEC producers agreed to reduce output to help balance the market after a glut of supply caused a steep fall in prices.

The curbs were meant to help drain a global oil glut, a goal that has largely been achieved, though supply disruptions are now adding pressure to prices.

Meanwhile there has been growing civil unrest in Venezuela amid an ongoing economic crisis.

The development came days after the oil-rich Persian Gulf state, which is the world's largest oil exporter, agreed to substantially raise production.

The Trump administration is pushing countries to cut all imports of Iranian oil from November when the United States re-imposes sanctions against Tehran, after Trump withdrew from the 2015 nuclear deal agreed between Iran and six major powers, calling it a "defective" agreement.

"I guess the Saudis want to give the confidence to Trump to go very hardcore on Iran", tweeted the oil market's most vocal bull, commodities hedge-fund manager Pierre Andurand.

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