OPEC oil output has risen in June by more than 300,000 barrels per day, (bpd) according to figures the exporter group uses to monitor its supply, as a recovery in two nations exempt from a supply cut deal countered high compliance by many others.
Several nations from OPEC plus non-members Russian Federation and Oman will meet in St. Petersburg on July 24 to check up on the success of their agreement to curb output, reduce swollen global inventories and boost oil prices.
USA explorers put more rigs to work drilling for oil in the US last week, reversing a one-week decline and reinforcing fears that Opec won't be successful in its efforts to ease a global oversupply. US government data shoed revealed total domestic crude production rose by 88,000 barrels a day to around 9.34 million barrels at the end of last week.
OPEC's best chance to make a big dent in the lingering glut in the USA, and with it reverse oil's three-year slump, lies in the remaining weeks of peak summertime demand. "If necessary, we can increase the amounts that need to be reduced, or on the contrary, we can move to reduce them", Novak told CNBC on the sidelines of the World Petroleum Congress in Istanbul.
Despite the modest rally on the day, Brent crude prices were 17 percent below their 2017 opening level.
Ahead of Wednesday's weekly government data, analysts surveyed by S&P Global Platts expects USA crude inventories show a 2.6-million-barrel decline.
The discount of Dubai crude to Brent, the benchmark for more than half the world's oil, has slumped to about 80 cents a barrel, compared with more than $3.50 a barrel in early July previous year, according to data compiled from PVM Oil Associates.
"There has been some talk about Nigeria and Libya having to fall in line with the rest of Opec members, but right now those counties want to take care of their own needs first", said David Madden, market analyst at CMC Markets. "OPEC's objective to reduce oil inventories to their five-year average is elusive in the short-term", the bank's head of commodity markets strategy Harry Tchilinguirian said in an emailed report. West Texas Intermediate (WTI) prices were 1.87 per cent up at $45.23 per barrel.