Oil held losses below $71 as OPEC signaled it has enough spare capacity to mitigate any impact on markets even if renewed US sanctions on Iran curbs exports from the group's third-largest producer.
The cartel sees non-OPEC supply in 2018 growing by 1.7M barrels Y/Y, almost 90% coming from the U.S.
Three members of the Organization of Petroleum Exporting Countries - Saudi Arabia, Kuwait and the United Arab Emirates - together have enough capacity to act as a cushion the U.A.E. energy minister said.
To recall, last Tuesday, on May 8, U.S. President Donald Trump abrogated nuclear deal with Iran threatening with new sanctions on Iran and the countries that will continue cooperating with Tehran.
Brent crude - the global benchmark - briefly hit $78 a barrel last week, extending its rally from mid-February to over 26%.
OPEC and several other non-OPEC producers have reached an agreement to extend the production deal for a further nine months.More news: Iranian FM Zarif In Moscow To Meet Lavrov On Nuclear Deal
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Despite this, OPEC's latest report said producers were cutting more than required under the deal, while producers not party to the agreement, such as USA shale companies, were starting to face constraints on future output.
He did not exclude the possibility that oil prices per barrel could increase to as much as $100 (£74) at some point this year saying that the industry had the potential to do it.
On the MCX, oil prices declined 1 percent to close at Rs.4757 per barrel. The contract closed down 1.1 percent on Friday.
Before the Iran nuclear deal, the U.S. sanctioned Iran's oil production in 2012 which reduced the output from 2.5m barrels per day to just over 1m.
The surge in oil prices comes at a time of tight supply amid record Asian demand and voluntary output restraint by the Organization of the Petroleum Exporting Countries and non-OPEC producers including Russian Federation.