Their holdings are estimated at around 157bn barrels.
He has already emphasized that the sanctions which would be imposed on Iran would be "at the highest level". Trump's decision in May to pull out of the United Nations -backed nuclear agreement with Iran, meanwhile, means sanctions on the Iranian energy sector snap back into place in November. Now it seems more reasonable and the oil curve indicates prices closer to the fundamentals.
Saudi Arabia's King Salman bin Abdulaziz Al Saud (L) receives US President Donald Trump for the Arab Islamic American Summit in Riyadh, Saudi Arabia May 21, 2017.
Michael Armstrong, regional director for the Middle East, Africa and south Asia (Measa), FCA and Institute of Chartered Accountants in England and Wales (ICAEW), said due to surge in oil price, the UAE economy will bounce back in 2018 with growth accelerate from 1.5 per cent last year to 2.6 per cent this year. The view of the two oil kingpins was one to behold, ushering in the new era in oil price "management".
"However with plenty of uncertainty over Iranian supply, and the Syncrude outage in Canada, the market is likely to remain fairly well supported in the near term".
America wants to cut Iran's oil exports to zero by November.
While trade concerns may be partly responsible for the decline, the industry was surprised to learn this week that oil stockpiles in the us are getting larger, not smaller. Venezuelan production has decreased day after day, reaching a 30 year low of only 1.5 million barrels per day.
Iran exported more than 2.4 million barrels a day in May, according to the International Energy Agency.
Abu Dhabi National Oil Company (Adnoc) on Tuesday said it has the capacity to increase production by several hundred thousand barrels per day, if required to meet any potential supply shortage.
It remains a potent way to counteract Washington. "On balance, this leaves the oil market tighter than before, with less spare capacity". This is not to mention the brewing conflict between the U.S. and Iran. If the US succeeds in blocking Iran from exporting its oil, OPEC would struggle to offset the missing barrels. Meanwhile, stopping Iranian oil sales would take 2.4 million barrels a day off world markets.
The Trump administration has denounced an imperfect and inefficient agreement. The consequences for the United States are double-edged.
In April, Iran's oil minister Bijan Zangeneh said that $60 a barrel is a good price for oil. "The news of their commitment to ramp production quickly enough along with some evidence that Saudi Arabia is ramping production is giving the market some pause".
The big problem with OPEC is that when prices went up they became accustomed to an unjustified oil revenue and when they went down they faced huge deficits from unsustainable subsidies.