Oil is increasing due to supply losses, the United States is pushing to isolate Iran

The "hardline" approach comes at a time when oil markets are finely balanced and crude prices have recently peaked at three-and-a-half years.

It also occurred as a result of a supply outage at Syncrude in Canada, which immobilized 350,000 barrels per day (bpd) of crude, with repairs expected to last at least until July. Declining Canadian exports helped drain heavy crude oil supplies in North America and contributed to the US crude oil inventory draw, analysts said.

In Libya, a power struggle between the official government and the rebels has not revealed who will take care of the country's oil exports, even though the oil ports of Hariga and Zueitina in the north of the country are in danger. East Libya are functioning normally.

The Organization of the oil exporting countries decided Friday to increase oil production to prevent overheating of the market. The 14-member producer group took action as Venezuela's production declined, impending supply disruptions from Iran and lower production elsewhere raised concerns about rising oil prices for weaken global demand.

The main exporter and leader of OPEC in Saudi Arabia plans to beat 11 million bpd in July, against 10.8 million bpd in June, told Reuters Tuesday a source close to Saudi plans.