Crude prices fell Tuesday, retreating from early gains that had lifted the USA benchmark as high as $75 for the first time in more than three years, which prompted traders with bullish positions to book some profits ahead of the July 4 US holiday.
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. The White House has said the US will put those sanctions back into place.
United States production has soared 30 per cent in the past two years, to 10.9 million bpd, meaning the world's three biggest oil producers now churn out nearly 11 million bpd each, meeting a third of global oil demand.
Iranian President Hassan Rouhani is warning that regional oil supply could be jeopardized if the United States manages to get its allies to stop buying Tehran's oil.
Trump has repeatedly sought to blame surging oil prices on OPEC which has cut its output for the last 18 months to shrink a global glut of oil.
In an interview with CNNMoney, joint secretary for global cooperation at the Indian petroleum ministry, Sunjay Sudhir, said only sanctions by the United Nations are recognised by India, not unilateral ones put forward by the US. "They have to put out another 2 million barrels in my opinion, because we don't want that happening", Trump said.
Iran possesses the second-largest gas reserves on the planet after Russian Federation and the fourth-largest oil supply, while Saudi Arabia is the world's biggest oil exporter.
The White House later walked back the president's comments, saying the king had said his country could raise oil production if needed.
"Our focus is on getting as many countries importing Iranian crude down to zero as soon as possible".
"We have been clear with countries and companies around the world that we are bringing severe economic pressure on Iran until the regime changes its destabilizing policies", Hook said.
The State Department said Monday it would examine waivers on a "case-by-case basis" as it re-imposes sanctions.
"It depends on the conduct of other governments", Bolton said.
King Salman briefed the cabinet on the telephone call he had received from President Donald Trump during which the two leaders confirmed the need to exert efforts to maintain the stability of oil markets and the growth of the world economy.
"Any increase in the production by any member country beyond commitments stipulated in OPEC's decisions ... would constitute a breach of the agreement", Zanganeh wrote in his letter, seen by Reuters and also reported by state media on Sunday.