Meanwhile, Saudi Energy Minister Khalid al-Falih discussed the oil market developments with his Russian counterpart Alexandr Novak, and both agreed to continue close coordination in the interest of producers, consumers and the global economy, according to a statement by the Saudi Energy Ministry on Tuesday.
Iran says it will find ways to export its oil, despite what he does.
US production has soared 30 percent 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.More news: Look Federer off to a fluent start
The 9.1 trillion 2018 budget was predicated on a benchmark price of $51 per barrel and production of 2.3 million barrels per day.
"US oil diplomacy has at points in the past been highly successful in calming oil markets, and it has generally been more successful the quieter it has been", the analysts wrote. Iran, however, said it would be tough to erase its oil completely from the market by November, when USA sanctions snap back into place.
Still, Iran vowed on Sunday to defeat United States efforts to block its oil exports and warned rival producer Saudi Arabia it would never take Tehran's "place" on the global oil market.
"In this battle", he said, "any country that tries to take Iran's place on the oil market will be guilty of treason against Iran. and surely one day it will pay the price of this treason".More news: Manuel Neuer Brands Germany Squad 'Pathetic' After World Cup Group Stage Humiliation
US President Donald Trump sent a message on Twitter that he asked Saudi Arabia to increase oil output by 2 million barrels because "prices to (sic) high".
The movement came after Iran reportedly threatened to disrupt oil shipments from the Middle East Gulf if Washington pressed ahead with sanctions against Iran.
The impact on the tanker trade remains unclear as oil buyers could turn to regular sources such as Saudi Arabia for more barrels, or look further afield at long distance sources such as the US.
This was due to outages around the world from Libya to Canada and Venezuela are keeping priced elevated. "We are also working with oil market participants, including producers and consumers, to ensure market stability".More news: NBA Draft 2018: Who Are The Biggest Winners And Losers?
"And so, we are not looking to grant licenses or waivers broadly on the reimposition of sanctions, because we believe pressure is critical to achieve our national security objectives", he said.