In matter of 11 months, crude oil production in the USA increased by close to 14%.
Reuters is reporting Brent crude futures eased 6 cents to $67.44 a barrel by 1519 GMT, while U.S. West Texas Intermediate crude fell 12 cents to $63.79. US crude was down $1, or 1.6 percent, to $60.66 a barrel, after touching a low of $60.18.
This represents a significant hardening of OPEC's policy and has partially reversed the recent slide in benchmark Brent prices, which was probably the intention. Equities markets weakened on Wednesday, while the US dollar.DXY hit a one-month high.
Last month, Energy Minister Khalid Al-Falih said that although a surplus in global crude markets could persist into 2019, "I personally believe we'll be rebalanced by the end of 2018".
Most of this liquidation seems to be attributable to profit-taking after the big rally in oil prices over the last seven months.
Oil prices held little changed near two-week highs early on Monday, supported by comments from Saudi Arabia that it would continue to curb exports in line with the OPEC-led effort to cut global supplies.
On 1 January 2017, after nearly a year of shuttle diplomacy, OPEC and non-OPEC producers reached their first deal since 2001 to reduce oil output jointly by nearly 1.8 million barrels a day.
'Rising global oil demand will be driven mainly by emerging markets, with non-OECD consumption rising by an average of 2.8 percent per year in 2018-19, which would be the fastest rate since 2013, ' the Economist Intelligence Unit's Birch said.
Crude inventories rose by 933,000 barrels in the week to 421.2 million, compared with analyst expectations for an increase of 2.1 million barrels.
The prestigious award, which is presented annually by the UK's Energy Institute and Gulf Intelligence, is also in recognition of the leadership displayed by Al Falih in guiding some 20 producing countries from around the world to find common objective in cooperation to reach over 100% compliance with cuts and extend the oil supply pact for a second year through to the end of 2018.
"Production numbers and rig counts are just as important at this stage, particularly with U".
Arab News quoted Mazrouei as saying that cooperation between oil producers including Russian Federation had reached levels that were "more than expected". US crude exports bounced around between 0.5 million barrels per day (mb/d) and 1 mb/d in the first half of the year, a level that jumped to a range between 1 and 2 mb/d in the third and fourth quarters.
"Yesterday's inventory report was very bullish for crude oil", John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund, said by telephone.