Brent crude futures had fallen 21 cents, or 0.3 percent, to $72.69 a barrel by 0615 GMT.
"Weekly shifts in the US crude stocks are being increasingly influenced by worldwide trade and this was certainly the case with this week's data", Jim Ritterbusch, president of Ritterbusch and Associates said in a note.
Asian spot LNG prices continued correcting lower with potentially steeper dips expected ahead amid lower demand from China and India and healthy supply.
"Member countries committed themselves to reach a production adjustment conformity level of 100 percent, as of July 1, 2018", Bijan Zanganeh wrote in a letter sent to Saudi Energy Minister Khalid al-Falih, according to Shana. The report, however, noted that the next price collapse could be avoided by boosting production in countries including the United States, Angola, Canada, and Brazil. The committee, known as the JTC and chaired by Saudi Arabia, looks at the compliance level to the production pact.
Still, Gulf Coast refiners are processing as much oil as they can, and indeed, the uptick in domestic oil production has helped fuel a surge in the export of refined products. However, the standoff with General Khalid Haftar appeared to be on its way to some sort of resolution, with the militia handing the ports back over to the internationally-recognized NOC in Tripoli. It would be better to let the market work and slow demand mainly because the worlds spare production capacity is near historic lows. The parties explained the measure with compensation for the falling production in Venezuela and potential withdrawal from the market of a part of Iranian oil because of US sanctions.
Oil prices rose about 1% on Friday as strike actions in Norway and Iraq hit supplies, but futures were set for a second straight week of decline after Libyan ports reopened and, on the view that Iran might still export some crude despite United States sanctions.
In such a situation world powers and Iran appeared to make no concrete breakthrough on Jul.06 in talks to provide Tehran with an economic package to compensate for US sanctions.
On Monday, the Wall Street Journal reported that the International Energy Agency is also considering releasing oil supply.
The strike, which began last Tuesday, has had a limited impact on Norway's oil production so far, but some drillers warned of possible contract cancellations if the dispute goes on for a month or more. Also, a steady increase in exports also pushes down the net import figure.
Still, we think that increased production may not be enough, and prices will be supported by the continuous drop of Venezuela's and Iranian loss of exports.