Meanwhile, US President Donald Trump is again blaming OPEC for high oil prices, even though crude futures have recently retreated from 3½-year highs on reports that his administration asked Saudi Arabia to manage the market.
Russian Federation and Saudi Arabia, leaders of the deal that curbed crude output and boosted prices to three-year highs, were set to discuss their next move in Moscow on Thursday as the two nations faced off in the soccer World Cup. "Oil prices are artificially Very High!"
Production cuts by OPEC have led to worldwide oil prices hitting a four-year high last month that forced a Rs 3.8 per litre hike in petrol and Rs 3.38 a litre increase in diesel prices.
Indian Oil Corporation (IOC) chairman Sanjiv Singh met Wang Yilin, chairman of China National Petroleum Corporation (CNPC) in Beijing on Monday and held discussions to facilitate more USA crude oil imports to Asia to cut the dominance of OPEC. In fact, with global oil prices hitting a four-year high last month, retail price of petrol and diesel in India increased by up to Rs 4 per litre. Kazakhstan's oil output in the first five months of 2018 rose 6.4 percent from the same time a year ago to 37.7 million metric tons (1.83 million bpd), Deputy Energy Minister Makhambet Dosmukhambetov said on Tuesday.
Shortly after Trump's tweet on Wednesday, Senate Minority Leader Charles E. Schumer, D-N.Y., took to Twitter to respond.
Brent crude LCOc1 settled up 86 cents, or 1.1 percent, at $76.74 a barrel and USA crude CLc1 closed 28 cents, 0.4 percent, higher at $66.64 a barrel.
Brent crude, the global oil benchmark, settled down 1% to $75.94 a barrel on London's Intercontinental Exchange.More news: Sweden beat Mexico to top Group F
This comes a week before the June 22 OPEC Vienna meeting.
US crude output has risen nearly 30 percent in the last two years to a record high of 10.9 million barrels per day.
With demand for oil strong, Morgan Stanley said the group's "production is likely to creep higher".
"Markets are braced for the most fractious conference as OPEC members look fundamentally divided", said Phillip Futures analyst Benjamin Lu. It now expects countries outside OPEC to pump 1.86 million barrels a day above 2017 level.
The country boosted production after the USA lifted sanctions related to Iran's nuclear program in 2016, but analysts expect output to fall when the Trump administration's decision to withdraw from the deal takes full effect later this year.
"The United States shows by far the biggest gain (about 75 percent of the total across 2018 and 2019), but recently this expansion has not been without stress", the report said, referring to a gap in recent weeks between the USA and European oil futures contracts.
OPEC itself spotlighted United States output in its own monthly report on Tuesday, citing the growth of non-OPEC supply as one of several question marks hanging over the situation.