Brent crude futures rose 23 cents to settle at $77.85 a barrel.
Nobkhat revealed that his government is creating an emergency budget which will be discussed by parliament along with the public budget.
As such, the addition of 1 mb/d from Saudi Arabia alone would lead to the OPEC+ group exceeding the production levels they just committed to, after factoring in additions from Russian Federation and other Gulf States.
Prices had already been rallying this week after the United States said all countries must stop buying oil from the Islamic Republic by November or face sanctions, as part of Trump's withdrawal from the Iran nuclear deal.
The cost of gasoline in Japan remains high due to rising crude oil prices following the USA withdrawal from the Iran nuclear deal.
His task was made easier by Russian Federation which has been chumming up to Saudi Arabia as the two world-leading producers cement their co-operation to steer global oil policy.
At the current rate for Urals, the Russian benchmark for the price of oil, the extra barrels pledged b Novak would yield about $12 million per day.More news: Germany's early World Cup exit 'hurts so much' for Ozil
As the U.S. piles up pressure on countries to cut oil imports from Iran by 4 November, India on Thursday said it will take all necessary steps including engagements with relevant stakeholders to ensure its energy security, even as the government has asked oil firms to start exploring alternative sources. Crude oil companies and many countries will not want to face the possibility of US wrath. They were actually over-complying with actual cuts at 2.8 million barrels per day. However, China, India and Turkey might be less likely to fully cut off Iranian imports, he said.
Despite this, analysts warn that the market has little spare capacity to deal with further disruptions.
A major OPEC meeting on Friday resulted in an agreement to enhance production by up to 1 million barrels per day.
Futures in NY lost 0.4 percent, paring a 6.9-percent surge in the previous two sessions.
According to Helima Croft, global head of commodities research at RBC, the Thursday statement from the State Department shows that the USA wants to be aggressive in reducing as much Iranian oil exports as possible, and companies have already started to react.
Supply risks from Iran to Venezuela have buoyed crude markets, even as the Organization of Petroleum Exporting Countries and allies such as Russian Federation pledged to relax production caps.
Saudi Arabia is starting to panic, and is growing concerned that the growing number of supply disruptions around the world could cause oil prices to spike.
Saudi Arabia plans to pump a record 11 million bpd in July, up from 10.8 million bpd in June, an industry source familiar with Saudi plans told Reuters on Tuesday. The company said last week it had made no final decision.