OPEC and non-OPEC countries agreed in November 2016 in Vienna to cut oil production by 1.8 million barrels per day, roughly 2 percent of global oil production, to ease a global supply glut and push up oil prices that dropped below $30 in early 2016 as the situation wa further exacerbated by China's economic slowdown and the US increasing oil output as a shale oil producer. The more active August contract rose 0.3 percent.
Global benchmark Brent LCOc1 was down 12 cents, or 0.16 percent, at $76.67 a barrel by 0159 GMT.
The discount between USA and Brent crude has now blown out to around $US11 a barrel, the largest it has been since mid 2015 and a sign the growing production and bottlenecks in pipelines and storage is now capping price growth and indeed putting downward pressure on United States prices.
Bonny Light sold for $53.75 in 2017, and $68.98 earlier this year.
Saudi Arabia's energy minister Khalid al-Falih met with his counterparts Bakheet al-Rashidi from Kuwait, Suhail al-Mazrouei from the UAE, along with Mohammed al-Rumhy, oil and gas minister from non-OPEC producer Oman, according to a statement released by Kuwait's Kuna news agency on Sunday.
The American petroleum Institute (API) on Wednesday reported that the volume of oil reserves in the USA last week rose 1 million barrels and distillates by 1.5 million barrels, while gasoline inventories decreased by 1.7 million barrels.
On the supply side, OPEC and its friends chose to cut back production at the end of 2016 and throughout 2017 in an effort to increase prices.
Oil prices edge down amid worries Saudi Arabia, Russia could up supply
However, oil could jump to $100 in the event of a " complete collapse " in Venezuelan crude production, Parker said . OPEC is raising output because it is trying to keep crude oil at a price that is more attractive to refiners.
The biggest continuing factor is the influence of rising USA output.
Based on last week's price action, it looks as if the spread between Brent and WTI crude could continue to widen this week especially if USA production continues to rise and OPEC and the non-OPEC producers continue to say that any increases in supply will be gradual. It was also up 14.6% from March previous year.
Meanwhile in the USA, bottlenecks in key shale plays such as the Permian basin are keeping record-breaking levels of output trapped.
The OPEC cuts which saw cutbacks of 1.8 million barrels per day of output, achieved a 149 percent commitment in April, according to statistics by the OPEC Secretariat in Vienna, Austria.
Output at Gazprom Neft, the only Russian company, which produces oil offshore in the Arctic, declined by 1.1 percent.
"Crude oil production rose to another record, while drilling activity picked up again".
USA natural gas production in the lower 48 states rose to an all-time high of 88.8 billion cubic feet per day (bcfd) in March, up from the prior record of 87.7 bcfd in February, according to EIA's production report.