Crude futures jumped over 2 percent on Tuesday and USA oil topped $70 for the first time in two months as Washington pushed allies to halt imports of Iranian crude, which would constrain global supplies.
USA crude futures CLc1 rose $2.23, or 3.16 percent, to settle at $72.76 a barrel.
Higher feedstock crude oil prices, as well as surging fuel exports from China, have pulled down Asian refinery product margins to two-year lows.
Innes said the outage had contributed to a major draw in USA crude oil inventories.
Brent crude was up 65 cents a barrel at $76.96 by 1155 GMT. The future of Iranian crude exports was also in doubt.More news: MA reports 1st West Nile virus positive mosquito
Kilduff theorized that Trump's plan is to crush the Iranian regime after 40 years of inconsequential US pressure - something several Middle Eastern nations, most notably Saudi Arabia, would presumably applaud.
So, it's not inconsistent for Russian Federation to say we should increase 1.5 million barrels a day, because they're looking at a longer term horizon.
"We already mobilised the Aramco machinery, before coming to Vienna", Falih said, referring to the Saudi state oil company, adding that the media and analysts have "underestimated" the action that will be taken by OPEC and its allies.
Mr Zanganeh also said President Trump was wrong to target Iran's oil as part of sanctions due to come into force in November against the Islamic Republic. He criticized the cartel again in May and after last week's meeting, where OPEC and non-members agreed to raise production by 1 million bpd.
A power struggle between the official government and rebels has left it unclear who will handle Libya's large oil reserves, although as of late Tuesday sources said the country's oil ports of Hariga and Zueitina in eastern Libya appeared to be working normally. The aim of the organisation is to stabilise oil markets and steady the supply of oil for the public.More news: Ozil In Verbal Spat With Angry Fans As Germany Exit WC
Excessive crude oil price increases would push up worldwide prices of fuel and other oil-related products, thereby boosting production costs and stagnating consumption and investment.
News that Saudi Arabia plans to pump up to 11 million barrels of oil in July, the most in its history, was outweighed by the renewed Iranian supply concerns, traders said.
"It is a compromise between some countries which wanted to increase production, especially Saudi Arabia, and some others which were in favor of the status quo (Iran, Venezuela, Iraq)".
Mr Zanganeh had initially objected to any adjustment to OPEC's pact with 10 allies led by Russian Federation to cut output by 1.8 million b/d arguing that negotiations had been tainted by President Donald Trump's complaints over high prices. Both banks cited limited spare production capacity as the reason for the increase in price forecasts.More news: Trump Says Saudi King Agrees to Ramp up Oil Production