Crude oil futures for November delivery ended down $2.08, or 2.7%, at $74.33 a barrel.
Global benchmark Brent crude oil futures were at $84.98 per barrel in early trade, up 40 cents, or 0.5%from their last close.
Some analysts also said Iran is forced to store crude oil as it can not easily close its taps, mainly because it needs the associated gas produced with crude oil to meet very high demand for natural gas and partly because of reservoir issues.
Brent crude has risen to nearly 75 euros per barrel, the same level it reached in May 2008, on its way to a peak of 93 euros in July 2008. "Well, probably to some extent he's right, but we are absolutely OK with it at $65 to $75 per barrel to ensure the efficient operation of oil companies and ensure investment", Putin told delegates at the Russia Energy Week forum in Moscow.
Despite this, traders said prices were held back by a strong dollar, which makes oil imports more expensive for countries using other currencies domestically, as well as by climbing supply in the US.
With crude prices soaring and many currencies in emerging markets, including India's rupee and Indonesia's rupiah declining, analysts warn that economic growth may be eroded. The contract is on course for a gain of around 2.5 percent for the week.
"Trump thought he could shrink our country's oil revenues by imposing sanctions on Iran's oil and cutting its exports, but the rise in oil prices did not let that happen", Mohammad Baqer Nobakht, the head of Iran's Planning and Budget Organization, said Thursday.Analysts doubt if Saudi Arabia can produce much above current near-record levels. The global benchmark crude traded at a US$9.96 premium to WTI for the same month. Trump in July tweeted without evidence that Saudi Arabia would increase its production "maybe up to 2,000,000 barrels" a day.
Iran's crude oil and condensate exports fell to 1.7 million b/d in September, a fall of nearly 700,000 b/d from May, according to Platts estimates.
US crude inventories rose by 907,000 barrels in the week to September 28, to 400.9 million barrels, the American Petroleum Institute said Tuesday, ahead of Wednesday's official supply report from the US Energy Information Administration due at 1430 GMT. Saudi Arabia now produces some 10 million barrels of crude oil a day.