Leaving seasonal supply and demand dynamics aside, it is likely that traders were just too optimistic about OPEC and Russia's meeting last week, possibly expecting Russian Federation to prevail with its proposed 1.5 million bpd increase in total production, although that claim was highly questionable from the start.
The oil producers have reduced the production more than required in the past months.
The head of Saudi oil giant Aramco said it has spare capacity of 2 million bpd and can meet additional demand in case of supply interruptions.
Dmitriev told Reuters he expected investments between the two countries to double in the next three years.
Brent crude futures were down 78 cents at United States dollars 74.78 a barrel at 0917 GMT, while USA light crude was up 25 cents at USD 68.83 a barrel, supported in part by a Canadian supply outage. Trump said he hoped that the group would increase output substantially in a tweet on June 22, after the end of the ministerial gathering.
The Ministry of Hydrocarbons for the Republic of the Congo has announced that the country has become the fifteenth member of the Organization for Petroleum Exporting Countries (OPEC).
Edward Bell, commodity analyst at Dubai's Emirates NBD bank, said when the Vienna agreement was priced into the market, he expected prices "in a range between $65-$70 per barrel for Brent for the remainder of the year".
There are difficulties in getting crude oil to market in the Permian Basin in Texas and New Mexico, in Venezuela, which is struck with political turmoil, and in Angola, Perry said. Once the OPEC supply comes into the market, the surplus in the market will grow, causing the oil prices to decline.
When it comes to crude oil prices, politics dwarfs everything else.
Stating that current high oil prices dent the economic development of many countries, he had stated that already fragile world economic growth will be at threat if oil prices persist at these levels.
"It is high time to move to responsible pricing, one that balances the interests of both the producer and consumer".
Iran said it doesn't believe buyers of its oil will get waivers from the USA government that would allow them to continue purchasing cargoes after President Donald Trump's renewal of sanctions. "Price of oil and gas have become subject to vagaries of geopolitics", he had added.
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