Oil has been leaning to the bullish side this week after dipping from the weekend's headlines that Trump has encouraged Saudi Arabia to increase their production to make up for market shortfalls from Iran and Venezuela.
Iran, however, says that they intend to try to circumvent the USA ban with new rules to make it easier to export oil.
The cabinet commended "constructive cooperation between producing countries from inside and outside OPEC, which resulted in the agreement of 25 countries to increase oil supplies, taking into account the current market conditions".
He tweeted the Kingdom could pump "maybe up to 2,000,000 barrels", presumably meaning barrels a day. On Monday, Hook expressed confidence that the US sanctions policy would not prompt mass shortages, but analysts have expressed doubt that Saudi Arabia can increase production by as much as Trump described.More news: Actress brings along her boyfriend to Akash Ambani's pre-engagement bash
These moves follow US President Donald Trump's decision in May to withdraw the United States from the Iran nuclear deal, formally known, as the Joint Comprehensive Plan of Action, which removed sanctions against the Islamic Republic in exchange for curbs on its nuclear program.
Saudi Arabia's spare production capacity is estimated to be around 2 million barrels per day.
Saudi Arabia's Oil Minister Khalid al-Falih arrives for an OPEC meeting in Vienna, Austria, June 22, 2018. "On balance, this leaves the oil market tighter than before, with less spare capacity".
Iranian President Hassan Rouhani on Tuesday decried the USA plan as a "fantasy". The move partly reversed the original OPEC+1 deal which came into force in January past year and was created to reduce the global glut in oil. "And yes, we will certainly be requesting that their oil imports go to zero, without question".More news: Australias Finch smashes own record for highest T20I score
Trade tensions are likely to overshadow that trip.
"OPEC will, from July 1, strive to adhere to the overall conformity levels for the remaining duration of the Declaration of Cooperation", he said in a statement cited by the news agency.
The Cabinet was briefed on Crown Prince Mohammed bin Salman's visit to Russian Federation.
Crude pared gains after hitting a three-year high in NY as prospects for accelerating supply damped enthusiasm for the rally and traders curbed bullish bets before a USA holiday.More news: Obama secretly granted US citizenship to 2500 in the Iran deal