Saudi Arabia's King Salman bin Abdulaziz Al Saud (L) receives US President Donald Trump for the Arab Islamic American Summit in Riyadh, Saudi Arabia May 21, 2017.
Any movement outside of the OPEC-agreed standards could provoke retaliation from other members, potentially worsening concerns about the already-looming trade war.
According to Commerzbank, OPEC now has just enough oil to meet global demands without Iran's supply. The kingdom, its Gulf allies and Russian Federation indicated that they will lift production by about 1-million barrels per day (bpd) to offset losses from Venezuela and Iran, but not more.
As well as declines in nationwide stockpiles, inventories in the key USA storage hub of Cushing, Oklahoma, shrank by 2.6 million barrels, the API was said to report.
"WTI has traded at a substantial discount, although this has evaporated over the last week amid unchanged U.S. production but large inventory drawdowns".
Brent crude futures fell 25 cents, or 0.3 percent, to $77.14 per barrel by 0317 GMT from their last close.
United States (U.S.) President Donald Trump reiterated his call for the Organisation of the Petroleum Exporting Countries (OPEC) that exerts significant influence over oil prices to take action to halt crude's upward climb.
However, oil prices have shot up and Trump, anxious about the impact on USA voters ahead of November midterm elections, is appealing to the Saudis for help. "REDUCE PRICING NOW!" Trump tweeted.
Norway-based Rystad Energy expects Iranian production to drop by 700,000 bpd by December 2018.
The United States has always been both a major producer and consumer of oil, which means that most presidents have favoured moderate oil prices.
"[It] would be a kind of self-harm for the USA as it would lead to dramatic price hikes in the oil market", Ardebili said, adding that "American consumers" will likely pay higher prices at the pump due to "Trump's unilateralism".
Apart from Iran, Venezuela, Libya and Angola are also facing chronic production issues. The June figure would represent an increase of about 500,000 bpd from May.
A gas flare on an oil production platform in the Soroush oil fields is seen alongside an Iranian flag in the Persian Gulf, Iran ib July 25, 2005.
Adding to the constraints is the short-term shutdown off Suncor-majority owned Syncrude until at least the end of July due to a tripped power transformer. The Tradefair team brings you the latest from U.S. politics.
"The OPEC monopoly must remember that gas prices are up and they are doing little to help".
"On the bearish side both Saudi Arabia and Russian Federation are living up to their promise to increase output", said Tamas Varga of oil broker PVM.
Trump, however, is not satisfied with either the current level of oil prices or the announced production increase.