Crude oil prices came under a modest selling pressure after the weekly report released by the U.S. Energy Information Administration showed that the crude oil inventories increased by 2.1 million barrels for the week ended June 1 amid an increase in output. Rising production has prompted selling since global benchmark Brent LCOc1 climbed above $80 a barrel last month.
Washington was anxious that the sanctions would curb deliveries from Iran and push oil prices up, the sources said.
Analysts insist oil prices are heading higher.
The surge in USA production has pulled down WTI into a discount versus Brent of more than $11 a barrel, its steepest since 2015.
Opec and Russian Federation meet on 22 June to discuss production policy.
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OPEC and non-member producers led by Russian Federation had agreed to curb output by about 1.8 million barrels per day until the end of 2018 to reduce global stocks, but the inventory overhang is now near OPEC's target.
The United States (U.S) has quietly asked Saudi Arabia and several other Organisation of Petroleum Exporting Countries (OPEC) nations to raise oil production by some 1 million bpd, it was gathered yesterday. The United States is the second largest producer of crude oil and higher prices have now become more important to the USA economy then lower prices. "North America imported 3.21 mb/d of crude oil from Member Countries, which was 82,000 b/d, or 2.5 per cent, less compared to 2016 volumes", said the cartel.
Oil prices fell on Friday, reversing early gains as signs of weakening demand in China and surging USA output weighed on markets despite support from supply woes in Venezuela and OPEC's production cuts.
OPEC, founded in 1960, has a history of collaboration over oil policy despite differences of opinion and even wars between some members over the years.
OPEC and its allies will gather at a June 22 summit that's likely to be contentious.
"The Bloomberg story saying the USA has requested more oil from some OPEC nations has initiated the price drop", he said. Treasury Secretary Steve Mnuchin told reporters last month the us held discussions with "various parties" to pump more to offset a drop in Iranian exports due to renewed USA sanctions.