President Donald Trump on Thursday again urged Middle East oil producers to unleash their giant petroleum reserves and drive down the price of oil.
Continuing declines in supply from Venezuela and Iran remain the main reason for rising crude oil prices.
Trump called on the Organization of the Petroleum Exporting Countries (OPEC) to lower prices, saying on Twitter "they would not be safe for very long without us, and yet they continue to push for higher and higher oil prices".
He was referring to the weekly survey from the oil industry group the American Petroleum Institute (API) on Tuesday that indicated USA stocks had risen by 1.2 million barrels last week. The freeze on output levels has helped to remove over-capacity from the market, meaning oil producing nations are benefiting from higher prices.
Outside the US, dealers are focusing on the effect of the USA sanctions against Iran since the sanction targets oil exports from November.
The new sanctions take effect in November, as a result of with Trump's decision to pull out of a 2015 agreement on Iran's nuclear program.
According to the U.S. Energy Information Administration, U.S. crude oil supplies fell for a fifth straight week to a 3.5 year low in the week-ending September 14, while gasoline inventories also drew down sharply last week on unseasonally strong demand. This is because of the concern that the upcoming November oil sanctions on Iran by the United States is going to impede oil producers' ability to fill the shortfall that will be left by Iran. They also don't want oil prices to fall too much'.
USA pulled out in May from Iran's nuclear deal, called the Joint Comprehensive Plan of Action or JCPOA and resumed financial and industrial sanctions on the country in August and the additional oil-related sanctions would be imposed on November 4.
A commission of the cartel hopes to impose another supply agreement, influenced by USA president, Donald Trump.
The market reversed course after a source told Reuters that OPEC and its allies were discussing the possibility of raising output by 500,000 barrels per day. Brent Crude oil prices were 48 percent higher in Q2 2018 than in Q2 2017 and averaged $75 per barrel, the highest since the fourth quarter of 2014, EIA data showed. Saudi Arabia and Russian Federation said the increase would be about 1 million barrels a day.
Finally, weekly crude production inched back to 11 million bpd, the record high it has been hovering around this summer.