Since March, OPEC members have observed an agreement to reduce output to 1.8 million barrels pd.
Oil's bull market rally stumbled into some bad news.
The rally was driven by mounting signs that a three-year supply glut is easing, helped by a production cut deal among global producers led by the Organisation of the Petroleum Exporting Countries. "Since then, US refiners are coming back and USA exports last week were at a record high on a weekly basis", Petromatrix's Jakob said.
It was early June and Brent crude was back down below $50 a barrel, just where it had been last November before he and his Opec counterparts had agreed a deal to curb output and supposedly boost oil prices - yet Saudi Arabia's energy minister was resolute. Turkey's threat to halt exports of Kurdish crude also put traders on edge.
Crude oil prices on Wednesday continued to drift away from recent highs on signs the US energy sector was returning to normal following recent hurricanes.
Meanwhile, West Texas Intermediate (WTI) crude fell 17 cents to Dollars 50.41, while Brent crude slipped 24 cents to USD 55.88 per barrel on the New York Mercantile Exchange. "The price remains in an uptrend above its 200-day average", wrote Colin Cieszynski, chief market strategist at CMC Markets in a Tuesday research note. The global benchmark crude traded at a $4.90 premium to December WTI.
The Bloomberg Dollar Spot Index, which tracks the currency against 10 major peers, rose as much as 0.5 percent.
For many at the annual Asia-Pacific Petroleum Conference in Singapore, one of the global oil industry's biggest events, the clash means prices will remain in a narrow band of $50-$60 a barrel the rest of the year and into 2018.
West Texas International, or WTI, is the benchmark grade of crude oil produced in the US and serves as one of the three main pricing barometers of the global petroleum industry. Gasoline stockpiles are expected to increase by 1.2 million barrels and distillate stockpiles are expected to fall by 1.8 million barrels. USA crude oil more often than not falls in the final three months of the year, according to a study performed by CNBC using hedge fund analytics tool Kensho.