OPEC leader Saudi Arabia is set to increase oil production to a record 10.8 million barrels per day (bpd) in July, Bloomberg reports.
"We already mobilized 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.
Oil prices are higher Tuesday, as output uncertainty helps halt the slide experienced in the valuable commodity Monday.
The pressure on Iran comes as OPEC agreed Friday to boost oil production next month.
If the sudden removal of those supplies from the world market generates a sustained increase in oil prices, then Trump's withdrawal from the Iran deal won't just jeopardize Tehran's commitment to nuclear nonproliferation - but also his party's prospects in November's midterm elections.
The American Petroleum Institute (API) data on Tuesday reported a major draw of 9.2 million barrels in United States crude inventory for the week.
The industry group said gasoline stockpiles rose by 1.2 million barrels.
This shortage seems to have failed to meet market demand (in the wake of increasing global demand) and forced the cartel to pump out more oil.
Oil prices jumped on Wednesday as plunging US crude stockpiles compounded supply worries in a market already uncertain about Libyan exports, a production disruption in Canada and Washington's demands that importers stop buying Iranian crude from November.
IEA estimated OPEC had almost 3.5 million bpd in April 2018, with Saudi Arabia accounting for about 60%. "We're going to isolate streams of Iranian funding and looking to highlight the totality of Iran's malign behaviour across the region", the official told reporters. The South American producer's output has slid from 2.2 million barrels per day in 2016 to a mere 1.4 million barrels per day in 2018 due to the nation's inability to invest in productivity improvements as it struggles with political and economic crises. The cartel functions because member countries can raise prices by cutting output in a coordinated way, but the increased USA output reduced OPEC's overall market share, and thus their leverage.
Thomas Pugh, a commodities economist at the London-based Capital Economics, wrote in a note that OPEC is now producing nearly 1 million bpd below its collective quota; and Saudi Arabia, Kuwait, the United Arab Emirates and Qatar collectively produced about 900,000 bpd less in May than they did in December 2016. The aim of the organisation is to stabilise oil markets and steady the supply of oil for the public.