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As announced by the US authorities, on November 4 they will implement new sanctions against Iran, including restrictions on crude exports.

Mr Pradhan said that oil production in Venezuela is sliding, which had significant share in world's global crude basket.

Caroline Bain, a chief commodities economist with Capital Economics, said it's unlikely Saudi Arabia would do that because it has a unique opportunity to claim more marketshare when its bitter OPEC rival, Iran, starts dealing with its own sanctions.

On US sanctions on Iran the minister said that issue is not availability but due to geopolitical challenges there is a sentimental issue.

"The U.S.is now producing enough oil to satisfy almost all of its needs and is projected to do so or become a net energy exporter", the EPA said.

Wayne Gordon, executive director for commodities and FX at UBS Global Wealth Management, told CNBC that the market is moving into unchartered territory because any oil production from Saudi Arabia above 11 million bpd (which is widely viewed as necessary to offset Iranian losses due to the US sanctions) is "largely untested", even though he believes capacity globally "will start to ramp up next year". "In 2019, there is the possibility of a larger imbalance due to more growth in supply". "The majority of oil demand comes from sectors like heavy vehicles and commercial vehicles, and this demand will remain for a long time to come", he said. While Saudi Arabia and Russian Federation have increased production, "according to our information some of the (OPEC) countries are lagging behind".

Oil held gains after an industry report showed an unexpected drop in American crude stockpiles.

Out of this, supplies in the first seven months, till October, have not been impacted. It could enter into the oil world if the Saudi's are forced to retaliate by pulling crude from the market. For the remainder, enough cushion is available to avert any supply disruption, they had said.

Oil had been rising this week on worries about Iranian sanctions and tensions between the United States and Saudi Arabia after the death of Saudi journalist Jamal Khashoggi.

"These optional volumes can be taken at any time of the year and would be more than sufficient to make up for any shortfall that may arise because of the USA sanctions against Iran".

"Once pipelines and oil terminals are built connecting the Permian to the U.S. Gulf Coast, then there will be a big step up in U.S. crude oil exports", Harry Tchilinguirian, oil strategist at French bank BNP Paribas told Reuters Global Oil Forum. With last week's increase, US crude stockpiles have risen for four straight weeks now.