Also, a meeting of members of the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC producer monitoring their supply pact reported on Wednesday that compliance with the agreement has declined, meaning more oil is available to the market.
While Saudi Arabia and Russian Federation pledged last month that OPEC would soon decide how to distribute a collective output boost of about 1 million barrels a day, the committee didn't give a recommendation on how they should share out the planned increase during its meeting on Wednesday.
Since President Trump announced the USA withdrawal from the JCPOA, Washington has been pressing allies to end all imports of Iranian oil by a November 4. deadline Moreover, in a briefing on June 26, a senior State Department official was quite firm that the US doesn't anticipate offering any extensions or waivers to that timeline.
The United States holds a reserve of about 660 million barrels, and the Trump administration was considering drawing on the country's oil reserve, which would increase supply.
US crude oil imports averaged 9.1 million barrels per day last week, up by 1,635,000 barrels per day from the previous week. The contract hit a session low of $71.19 a barrel, its lowest since April 17.
Thirty-five years have now passed since OPEC imposed an embargo on the export of oil to the United States.
Trump invites Putin to Washington in the fall
Mr Putin said Russian Federation wanted to question U.S. nationals the Kremlin accuses of "illegal actions". Trump has called the summit "a great success", but he has been vague about what he discussed with Putin.
The U.S. signaled on Monday that it could consider waivers in some cases for countries who need more time to wind down purchases of Iranian oil, with U.S. Treasury Secretary Steven Mnuchin saying that "We want people to reduce oil purchases to zero, but in certain cases if people can't do that overnight, we'll consider exceptions". This is because July is typically the peak USA driving season.
Strategic Petroleum Reserve. After the Oil Weapon had been unsheathed by the oil-producing countries in 1973, the US government began to hold a Strategic Petroleum Reserve.
China and India have been top buyers of Iran's oil in Asia.
Refiners on the East Coast, for instance, don't have easy access to all of that oil from Texas.
For its part, South Korea announced that they will end Iranian crude imports by the end of July, halting all shipments.
The price of USA crude oil is dropping still further as oversupply in the market continues to dominate trading. This new mechanism for pricing oil remains outside the USA dollar's institutions, and so not so exposed to U.S. pressure. The highlight of the IEA report was the warning that the world's oil supply cushion "might be stretched to the limit" due to production losses in several different countries.
US WTI traded at $67.07, while Brent crude was trading down at $72.33. The objective is to bring down oil prices-and gasoline prices-ahead of the mid-term elections in November, the same month in which the renewed USA sanctions on Iran are returning. And how fast output levels will continue to rise will capture the market's attention.