As such, OPEC said, in its monthly report, "Although oil prices rebounded from five-month lows in (mid-May), following positive United States jobs data and assurances by Saudi Arabia that Russian Federation is ready to join OPEC in extending production adjustments to reduce a persistent supply glut".
A report from the American Petroleum Institute last Tuesday that said USA oil stockpiles rose by 2.8 million barrels last week.
The IEA forecast an increase in non-Opec output of 1.5 million barrels per day to 59.7 million bpd in 2018, with U.S. output to reach more than 14.1 million bpd.
After rising for three consecutive days, U.S. West Texas Intermediate crude futures fell $1.73, or 3.7 percent, to settle at $44.73 per barrel, its lowest close since November 14.
Oil prices edged up from 2017 lows on Friday but an ongoing supply excess put them on track for their fourth consecutive week of losses despite OPEC-led production cuts to support the crude market.
The commodity struggle to get by this week as OPEC countries and non-OPEC participating countries also reported an increasing oil production despite the pledges to extend the global output cuts.
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On June 15, the US Energy Information Administration said global oil markets are expected to tighten in the third quarter of 2017, then loosen through 2018.
A Market Research Manager, Tradition Energy in Stamford, Gene McGillian, said in the report that fears of oversupply was driving the market, adding that crude oil price would appreciate soon. "It's a huge resource, it's changed everything", said Gary N Ross, global head of oil at energy analysts Pira, of U.S. shale.
The last time this happened, in mid-2014, preceded a massive selloff in oil that dropped Brent from $108 a barrel to about $47 a barrel in the span of five months.
Oil inventories have remained high several months into a deal by OPEC producers with non-member nations to reduce supply by 1.8 million bpd.
OPEC's monthly report showed output from the group rose by 336,000 bpd in May to 32.14 million bpd, led by a recovery in Nigeria and Libya which are exempt from supply cuts. The oil price has declined more than 10 percent since the May agreement. In short, whenever oil demand rises and prices go up, it will be met by increased supply from the US. Production rose by 12,000 barrels a day to 9.33 million barrels a day.
"Our first look at 2018 suggests that U.S. crude production will grow year-on-year. but such is the dynamism of this extraordinary, very diverse industry it is possible that growth will be faster", the report said.
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