With news from the Energy Information Administration that US crude production earned a new monthly record by jumping 215,000 barrels per day (bpd) to 10.47 million bpd in March, West Texas Intermediate fell 3 percent on the week, making this the second week of declines for the benchmark. The Bloomberg Dollar Spot Index rose 0.2 per cent.
Crude stocks at the Cushing, Oklahoma, delivery hub for WTI fell 556,000 barrels, EIA said.
The global benchmark is at a $10.75 premium to WTI, after earlier reaching as much as $11.56 and having settled at the widest since February 2015 on Thursday.
The rise follows a huge increase of 15 oil rigs the week before. Saudi Arabia stayed within its quota and its production inched up to 10.00 million bpd because more crude oil was consumed domestically by power plants, according to sources in the Reuters survey. Now OPEC is facing the problem, if we really want to choke off American production, how low does the price have to go?'
Brent hit a three-week low below US$75 a barrel on Monday after OPEC and its allies, including Russian Federation, indicated they could adjust their deal to curb supplies and increase production, but recovered later in the week.
Energy ministers from Saudi Arabia, the United Arab Emirates, Kuwait, Algeria and Oman held an unofficial consultative meeting on Saturday in Kuwait City, the Kuwait News Agency reported, citing a statement from the joint ministerial monitoring committee of OPEC and non-OPEC countries.
Russia, one of the world's largest crude producers, and the Organization of the Petroleum Exporting Countries (OPEC) agreed to cut their combined output by 1.8 million bpd in order to smooth out bloated oil inventories and prop up prices.
The price increase was mainly due to the production cut by the Organisation of the Petroleum Exporting Countries, OPEC, and its partners.
West Texas Intermediate futures are down 2.1 per cent this week as pipeline bottlenecks in the Permian Basin add to pressure from unprecedented levels of US production.
Total products supplied over the last four-week period averaged about 20.7 million barrels per day, up by 1.3 percent from the same period previous year.
OPEC's oil production dropped in May by 70,000 bpd to 32.00 million bpd on the back of outages in Nigeria and a continuous decline in Venezuela that dragged the cartel's total production to the lowest level since April 2017, according to the monthly Reuters survey.
U.S. natural gas production in the lower 48 states rose to an all-time high of 88.8 billion cubic feet per day (bcfd) in March, up from the prior record of 87.7 bcfd in February, according to EIA's production report.