During the last round of sanctions prior to the nuclear deal, Iran's oil supplies fell by around one million barrels per day.
However, US crude settled down USD 1.67 at USD 69.06 per barrel and Brent settled down USD 1.32 at USD 74.85.
"Trump's decision will not have any impact on our oil export", the minister said on state television. The Brent variety declined by 0.22% to 77.30 United States dollars per barrel. That's up 27 percent since mid-2016 and means USA output is creeping ever closer to that of top producer Russian Federation, which pumps around 11 million bpd.
Presumably, pundits should have taken solace in the latest Baker Hughes data showing that USA drillers added rigs for the sixth straight week, bringing the total rig count to 844 - the highest since March 2015.
The deal is set to expire at the end of 2018, but the Bank of America analysts said that OPEC and Russian Federation are likely to continue working together to prevent prices from falling. Nonetheless, speculators wasted no time in positioning themselves ahead of the future shortage.
Despite this, OPEC's latest report said producers were cutting more than required under the deal, while producers not party to the agreement, such as US shale companies, were starting to face constraints on future output.More news: Lewis Hamilton takes another record from Michael Schumacher in Spain
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Jefferies said OPEC "has the capacity to replace the Iranian losses" but warned that "even if physical supply is held constant. the market will still be faced with a precariously low level of spare capacity". Additionally, global inventories have tightened amid strong demand from Asia.
On Tuesday, U.S. President Donald Trump withdrew his country from the landmark nuclear deal, which was signed in 2015 between Iran and the P5+1 group of nations (the five permanent members of the U.N. Security Council plus Germany).
The two leaders agreed for their teams to hold discussions on the potential impact of USA sanctions on firms doing business in Iran, Downing Street said.
OPEC's agreement is built to stretch as far as the end of 2018.
There is some chatter in the markets suggesting Kuwait and Iraq as two producers with the best ability to raise output quickly in response to any fall in Iranian exports.
It's likely to be then leaders such as Saudi Arabia and Russian Federation will consider whether or not fill in the gap for Iran. Long investors may be encouraged to book profits on this news in an effort to drive prices back into value areas.