The announcement "did not bring anything new to the table", and the market thus shed some of the earlier gains, says Olivier Jakob of PetroMatrix, adding that "It shows how much the market has already priced in the expectation that Trump will not extend the waivers" on US sanctions against Iran.
Oil steadied on Monday, reducing early losses after Israeli Prime Minister Benjamin Netanyahu said he would make an announcement regarding the nuclear deal with Iran, later on today.
Trump has until May 12 to decide whether to restore sanctions on Iran that were lifted after the global agreement.
Net length was reduced in NYMEX and ICE WTI (-17 million barrels), Brent (-7 million) and European gasoil (-2 million) but increased in USA heating oil (+7 million) and especially US gasoline (+13 million).
"But if the U.S.is not part of the deal, then there really is no deal", Yawger said.
OIL IS poised for a second monthly advance, propelled by the prospect of a disruption in Iranian supplies and as Opec closes in on its target of wiping out a global glut.
West Texas Intermediate crude for June delivery climbed 47 cents to settle at $68.57 a barrel on the New York Mercantile Exchange.
Donald Trump Deserves The Nobel Peace Prize, Says South Korea's President
He has also said it remains possible that Mr Trump may even travel to the North Korean capital of Pyongyang for the summit. At the same time, however, Trump said, "If it's not a success, I will respectfully leave".
Crude hovered near $68/bbl amid signals that an Iran nuclear accord may live on, even without the U.S.
Still, crude prices were within striking distance of a more than three-year high hit in late April, and analysts said the market is sensitive to any developments on Iranian sanctions.
A rise in USA government borrowing costs to their highest since 2013 this week has tempered some investor appetite for risk, but analysts said they believed Brent crude may have another attempt at marking new 2018 highs above $75 a barrel.
At 10:20 am Singapore time (0220 GMT), ICE June Brent crude futures were down 11 cents/b (0.15%) from Tuesday's settle to $73.75/b, while the NYMEX June light sweet crude contract inched down 7 cents/b (0.10%) at $67.63/b.
Angola, once Africa's biggest crude producer, is suffering sharp declines at under-invested offshore fields, with output dropping nearly three times as much as the nation pledged in an accord with fellow Opec members.
Venezuela's plunging output and looming US sanctions against Iran come against a backdrop of strong demand, especially in Asia, the world's biggest oil consuming region. USA crude production rose by 46,000 BPD the previous week, to 10.59 MMBPD.
The price action was choppy this week with both WTI and Brent posting two-sided moves. Investors are assessing if surging USA production, which has topped 10 million barrels a day every week since early February, will undermine efforts by the Organization of Petroleum Exporting Countries to balance the market via output cuts.