"Saudi Arabia and the UAE are turning OPEC into a tool for the U.S. and consequently the organization has not much credit left", Iran's OPEC governor, Hossein Kazempour Ardebili, was quoted by media as saying.
Supply concerns were stoked by data showing U.S. crude production fell by 100,000 barrels per day (bpd) to 10.9 million bpd last week as the industry faced pipeline capacity constraints.
Petromatrix said in a research note that "There has been a lot of speculative interest searching for Brent above $80.00 a barrel on the back of the us sanctions on buyers of Iranian crude oil, but so far this year any buying of Brent above $79.00 barrel did not have a long shelf life".
The official had warned earlier in August that Trump was apparently duped by Saudi Arabia into believing that the kingdom could replace Iranian barrels cut from the market. Despite the rise, oils prices fell again on Thursday.
The EIA expects the trend to continue for the rest of the year as well as through 2019. There are now eight tankers holding 14 million barrels of Iranian crude or condensate, a form of light crude extracted from gas fields, anchored in the Persian Gulf. Demand in 2018 is likely to grow by 470,000 bpd, also unchanged.
Elsewhere in his remarks, Kazempour Ardebili suggested that a deal reached between OPEC and non-OPEC producers in 2017 over production ceilings had already lost effect. Kazempour has voiced scepticism that other producers can add much more oil. This is far above the production that was agreed as per the supply cut agreement of past year. The country's oil Russian Energy Minister Alexander Novak sounded the caution note on Wednesday at an economic conference in the Russian city of Vladivostok.
He cited declines in Mexican production of more than half this year, as well as falling production in Venezuela by around 50,000 bpd, falling by half to little more than 1 million bpd, adding "that the market is still not balanced in long-term perspective".
The number of ships loaded with Iranian oil and anchored off the loading port of Kharg Island and the Souroush oil field has also risen as Iran's pool of buyers shrank, the data showed.
However, if push comes to shove and markets need more supply, Russian Federation will be able to ramp up production by 300,000 bpd mid-term, he said, in addition to the October 2016 level.