Oil inches up on tighter U.S. supply, looming Iran sanctions

Iran will apply various methods to thwart the US sanctions, Jahangiri said during a meeting of the resistance economy headquarters.

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".

"We will surely do something to thwart the USA rallying cry that Iranian oil must be stemmed", First Vice President Eshagh Jahangiri said in statements broadcast on state television.

In the most recent tweet on June 29, Mr Trump claimed that he and Saudi Arabian King Salman Bin Abdulaziz agreed to a 2-million-barrel production increase, but the White House later backpedalled.

Some argue that Saudi Arabia, Russia and the UAE, along with surging US exports will cover the shortage.

In May, the US retreated from a multilateral deal with Iran regarding its nuclear disarmament program, and imposed sanctions to limit the world's fourth largest oil exporter's access to global markets.

"We are confident that there is sufficient global spare oil production capacity", he added.

The president, in an interview with Fox News' "Sunday Morning Futures with Maria Bartiromo", also said he would not complete a new NAFTA trade deal with Canada and Mexico until after the November congressional elections.

(ADNOC) said on Tuesday it could increase production by several hundred thousand barrels per day if needed.

Last week, OPEC countries and other major oil producers that participated in the 2016 Vienna deal agreed on increasing production to one million barrels per day, which is the volume of the countries' over-compliance with the agreement. This will include allowing private companies to directly export the oil.

After reducing production by more than 1.8 million barrels daily since January a year ago to drain a global glut, the producers decided in Vienna on June 23 to reverse course. Analyst expectations were for a draw of 1 million barrels.

This was due to outages around the world from Libya to Canada and Venezuela are keeping priced elevated.

"And so, we are not looking to grant licenses or waivers broadly on the reimposition of sanctions, because we believe pressure is critical to achieve our national security objectives", he said.

"Also, taking a broad range of estimates from IEA, EIA and others, Saudi held spare capacity in the range of 1.3 - 2.1 mb/d when oil production was ~10 mb/d".

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