Is Donald Trump on a relentless quest to corner Iran?

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King Salman said Saudi Arabia is ready to deploy the nation's spare capacity to add more oil to the market.

Geoffrey Craig, the oil futures editor at Platts, said the drain on US inventory levels is in part because of higher domestic exports, which set a record for the week ending June 22 at 3 million barrels per day.

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. The White House has said the US will put those sanctions back into place.

This has been USA policy since President Donald Trump pulled out of the Iran nuclear accord on May 8, but many foreign capitals have been demanding waivers to allow some trade to continue.

Iran shipped out over 2 million barrels per day of oil a year ago, with Asia taking almost three quarter of the supply and the remainder heading to Europe.

As president he has made more direct attacks on the organisation than any of his predecessors in a string of attempts to stabilise the oil market and push Saudi Arabia to increase its capacity.

Outside North America, looming U.S. sanctions against major oil exporter Iran were the focus of attention.

Turkey has also said it would keep up Iranian crude imports, while China, the largest consumer of Iranian crude oil, has criticised the United States for withdrawing from the deal.

Oil briefly touched $75 a barrell on Tuesday before retreating following the news of the Saudi government decision.

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Some key countries are reliant on Iranian oil imports, including India and Turkey.

Most of the rally has been fueled by supply disruptions in Canada, Venezuela and Libya as well as the looming sanctions against Iran.

The developments were preceded by US President Donald Trump tweeting about his telephone talk with Saudi King Salman bin Abdulaziz Al Saud, who allegedly agreed to Washington's proposal to increase Riyadh's daily oil production to two million barrels.

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

Venezuelan production fell to 1.36 million bpd by June, compared to just under 2.5 million bpd at the start of past year, amid a structural underinvestment in the country.

Oil production, prices and politics require a delicate balance.

"Yes, of course. That's what we're doing".

The president also had tough words for other U.S. allies.