Oil hit $ 70 last week, after OPEC said demand will outstrip supply in the coming months. It is also for that reason that Saudi Arabia raised its prices to $ 1.90 per barrel.

Saudi Arabia ships over 60% of its exports to Asia. Its main buyers are Japan, China, India, and South Korea. According to Bloomberg, Saudi Arabia shipped about 6.1 million bpd of oil to Asia last month.

But OPEC said supply will drop very sharply in August, as demand will skyrocket since many countries will start lifting restrictions.

Hence, OPEC and its allies decided to stick to its plan of raising production in June and July.

Aside from that, the recent hike in oil prices fueled fears of accelerating inflation, so many called for the coalition to increase production.

OPEC began to reduce output in May last year, but has now eased the cut to around 6 million bpd.

Most oil-producing countries set their official selling prices on a monthly basis. Saudi Aramco's prices serve as a benchmark for oil markets, and often set the trend for countries such as Iraq and Kuwait.

With regards to the negotiations on the 2015 nuclear deal, it is currently deadlocked, but if parties come to a consensus, US sanctions on Iranian oil will be lifted.