That lifted oil prices firmly above $50 a barrel until last week, when the cartel's united front began to fracture at CERAWeek by IHS Markit, one of the world's most closely watched energy industry conferences, Croft said on Monday.
A surprise output jump from its biggest member, Saudi Arabia, put further pressure on prices.
In December, the world's petro-states congratulated themselves for what they called a historic achievement-24 of them agreed to cut their collective production by 1.8 million barrels a day, all in the service of bringing order to a chaotic oil market in which prices had plunged to about $27 a barrel.
The US Energy Information Administration Wednesday said commercial crude stocks in the country dropped by 237,000 barrels in the week ended March 10, which though relatively modest, ended a stubborn streak of nine consecutive weekly builds and also reinforced the American Petroleum Institute's data a day earlier showing a 531,000-barrel decline.
Recent production increases by Saudi Arabia have driven oil prices to their lowest point in three months.
As of 10th March 2017, the U.S. crude oil production was 9,109 thousand barrels, very close to where it stood a year ago.
US April crude futures fell 68 cents, or 1.4%, to settle at $US47.72 a barrel in NY, for a seventh straight session decline.
Supply from the 11 OPEC members with production targets under the accord - all except Libya and Nigeria - fell to 29.681 million bpd last month, according to these figures. "We will see what levels of production are".
The IEA said also that it still expects demand this year to grow by 1.4 million barrels per day, though it says it has changed its forecast to reflect expectations that the demand growth will come slowly and be skewed toward the end of the year. Below, we briefly discuss the reasons behind this sudden dip in oil prices.
Therefore, there is a risk that the deal will not be extended, due to both the positions of the main participants as well as USA shale, which is unlikely to have a great desire to join any production cut agreement in the foreseeable future, Rosneft told Reuters. Iran has allowances for production gains as it seeks to retake a market share lost to sanctions and secondary sources reporting an increase from January of 36,100 barrels per day to 3.8 million barrels per day.
There is "no way" OPEC would allow Iraq to increase production by 500,000 barrels a day in the middle of coordinated production cuts, Croft said.
Khalid Al-Falih, Minister of Energy, Industry and Mineral Resources of Saudi Arabia.