U.S. West Texas Intermediate (WTI) crude oil futures were at 64.28 U.S. dollars per barrel, down 33 cents, or 0.5 percent, from their previous settlement.
Selling accelerated yesterday morning as USA crude dropped below $63.71 a barrel, a technically-significant level at which some funds had stops in place, triggering automatic sales, said Bob Yawger, director of energy futures at Mizuho in NY.
OPEC could raise oil output from July if Venezuelan and Iranian supply drops further and prices keep rallying, because extending production cuts with Russian Federation and other allies could overtighten the market, sources familiar with the matter said.
Global benchmark Brent futures were at 71.44 USA dollars per barrel at 0424 GMT, down 29 cents, or 0.4 percent, from their last close.
Oil prices rallied more than 1 percent on Friday, with sentiment supported by OPEC-led supply cuts, escalating fighting in Libya and USA sanctions on petroleum exporters Iran and Venezuela.
Opec+, which includes most Opec members along with a number of non-Opec producer-countries led by Russian Federation, is trying to keep 1.2 million barrels per day (Mmbpd) off the market through June.
OPEC and its allies meet in June to decide whether to continue withholding supply. This was more than enough to offset the crude oil build.
However, President Vladimir Putin seemingly softened that stance.
Kirill Dmitriev, the Russian sovereign wealth fund chief who engineered the cooperation with OPEC, indicated this week that he wanted Moscow to pump more, although the Saudis, who virtually run OPEC, would like the curbs to remain.
Warns demand fell in developed OECD countries by 0.3 million bpd.
In fact, the sources had also revealed that the OPEC might even raise output from the beginning of third quarter of 2019, if Venezuelan and Iranian crude supply fall further and the crude oil prices keep surging.
The glut of supply in the global oil market is falling after Saudi Arabia-led OPEC and Russia-led non-OPEC agreed on December 7 to trim their total output by 1.2 million barrels per day (bpd) for the first six months of 2019.