The oil cartel and its allies will meet in June to decide whether to continue withholding supply.
The Organization of the Petroleum Exporting Countries (OPEC) on Thursday signaled that it may raise oil output from July if supply from Venezuela and Iran drops further - and although this message was conveyed to media via sources familiar with the matter, it was enough to cause traders to send crude prices plummeting. OPEC has said the curbs must remain, but there are signs that stance is now softening.
The group forecasts United States crude production to rise by 1.46 million bpd in 2019 to 12.42 million bpd.
Russian President Vladimir Putin's remarks this week that Moscow was against "uncontrollable oil price increases" was also a red flag to Jakob. If this happened, any increase would be smaller than 1.2 million bpd, the source said.
At the last OPEC meeting in Vienna, the group's members agreed to slash output by 812,000 bpd, with Russian Federation and nine other non-OPEC allies committing to a cut of 383,000 bpd for the first six months of 2019.
The March figure is down from 30.56 million bpd in February, largely on a huge fall in production from Venezuela and Saudi Arabia.
The sun sets behind an oil pump outside Saint-Fiacre, near Paris, France March 28, 2019.
Adding to the impact of the involuntary declines, top exporter Saudi Arabia has cut production by more than it agreed under the global pact.
The Canadian Central Bank said that the rising prices are fed by geopolitical factors and could bring prices to $80 per barrel or more.
Russian Federation and OPEC may decide to boost production to fight for market share with the United States but this would push oil prices as low as $40 per barrel, TASS news agency сited Russia's Finance Minister Anton Siluanov as saying on Saturday.
"Although it is still early days, the major centers of oil demand growth are performing strongly; in China, the economy seems to be reacting to the government's stimulus measures", it said, also reporting strong demand in India.