However, the longer-term outlook remains weighed down by an escalation in the China-U.S. trade war that has clouded the outlook for crude demand.
USA crude futures were down 6 cents at $69.79, after gaining 1.4 per cent the day before. Washington is pushing allies to cut imports of Iranian oil to zero and will impose a new round of sanctions on Iranian oil sales in November.
The prospect of Russian Federation and the USA working together to achieve global supply and demand objectives is intriguing given the long-standing rivalry between the US and OPEC; but it makes sense when one considers that both the USA and Russian Federation have a strong mutual ally in energy matters, namely, Saudi Arabia.
-China trade tensions even as U.S. President Donald Trump is said to want $200 billion in China tariffs despite talks with Beijing.
Brent crude futures dropped 44 cents, or 0.6 percent, to $77.61 per barrel by 0424 GMT.
The trade dispute is raising concerns about the potential for slower growth in oil consumption, offsetting supply concerns stemming from the upcoming USA sanctions on Iran. "The impact on economic growth is slowly dripping in, which again hurts oil prices", said Wang Xiao, head of crude research at Guotai Junan Futures.
Russia's Energy Minister Alexander Novak
However, the country's oil exports fell to 7.12 million barrels per day (bpd) last month from 7.24 million bpd, according to figures from the Joint Organizations Data Initiative.
According to reports, Iran's crude exports are already falling as the USA prepares to curb Tehran's ability to sell oil and participate in global financial markets.
Bloomberg reported Tuesday, citing unnamed Saudi sources, the kingdom was now comfortable with prices above $80 per barrel, at least for the short-term.
United States crude stocks increased by 1.2 million barrels according to the American Petroleum Institute (API), sharply reversing the market forecast of -2.7 million barrels, raising prospects for a widening premium in the Brent versus WTI with crude runs worsening in Europe and Asia.
U.S. Energy Secretary Rick Perry said in an interview with Reuters on Friday that he did not expect any price spikes and that the world's top three oil producers could between them raise global output in the next 18 months.
The Chief of OPEC, Mohammad Barkindo said that Iran is a very important member of the oil exporting organisation, however, it has no choice but to continue working with all parties.