Sanctions on Iran's crude exports displaced more than 1 MMBPD from global markets under President Obama, who garnered worldwide support for the penalties. West Texas Intermediate (WTI) crude futures were down 38 cents, or 0.6 percent, at $65.57 a barrel.
In similar fashion, the metal for delivery in July contracts was trading higher by Rs 32, or 0.73 per cent to Rs 4,387 per barrel in 272 lots.
According to the news agency's sources, the White House official called Saudi Crown Prince Mohammed bin Salman to make sure that the United States could count on Saudi Arabia's support, both as the world's biggest oil exporter and an influential member of OPEC.
"International prices, which hit a high of $80 a barrel in May, are now more likely to head back to $50 a barrel rather than continue surging toward the feared $100 level", said Forbes.
While Saudi Arabia and Russian Federation have signaled they're ready to raise production, Iraqi Oil Minister Jabbar al-Luaibi told Reuters an output boost isn't on the table when the group gathers in Vienna on June 22. For the week, US crude was set to fall 0.2 percent, while Brent was set to fall 0.6 percent.
"A consensus for higher oil prices and revenues will be the bedrock of every OPEC nation".More news: Pres. Trump signals support for legislation easing US ban on pot
Crude oil prices moved lower and continued to form a bear flag pattern.
Pradhan's remark builds on the rumours earlier this week of the US government unofficially asking the Saudis and other OPEC producers to increase output - because of USA president Donald Trump's charge that the cartel had been artificially boosting prices under its output reduction initiative (for the record, India has also repeatedly expressed its frustration over rising oil prices).
Despite this, oil markets are not unanimously bullish.
The American Petroleum Institute reported Tuesday that crude stockpiles fell by 2 million barrels in the week ending June 1.
Outside OPEC, however, there were ongoing signs of rising output.
Further weighing on prices has been rising U.S. output, which hit another record last week at 10.8 million bpd.
"This seems to be an intervention in OPEC's supply policy ..."