Iran, OPEC's third largest producer, which faces the snapback of U.S. sanctions targeting its oil sector, did not yet see any impact on its flows, with crude production remaining steady at 3.83 million b/d, according to the survey.
But the USA request and a Trump tweet in April that blamed OPEC for high oil prices has caused a split within the oil group, with some members accusing Saudi Arabia of being too eager to do Trump's bidding. "Not good!" Trump wrote in his post on Twitter after last raising the issue in April. With record amounts of Oil all over the place, including the fully loaded ships at sea, Oil prices are artificially Very High!
"Oil prices are too high, OPEC is at it again". Federal Reserve Chairman Jerome Powell said elevated crude oil prices, when compared with last year, could push short-term inflation above the Fed's 2 percent objective, but likely not have much of an impact over the next few years. Trump tweeted on April 20.
The oil market is on high alert ahead of the June 22 meeting, sector analysts reported, saying there were signs that Saudi Arabia and Russian Federation would push for higher production ceilings at the meeting.
The price of West Texas Intermediate crude oil is now $66.60 a barrel.
The two countries share a common view that production should increase gradually, but the precise volume of oil that could be returned to the market and the timing of the boost are still under discussion, Novak said in an interview earlier on Thursday.
U.S. West Texas Intermediate (WTI) crude futures were at $65.92 a barrel, down 44 cents, or 0.7 percent from their last settlement.
But the Paris-based IEA, echoing statements from oil producers as well as analyst comment in recent weeks, said there may be a change to the so-called Vienna agreement.
OPEC will probably overcome internal disputes to agree on a production increase next week to temper rallying prices, according to a Bloomberg survey.
OPEC and non-OPEC producers struck a deal in late 2016 to trim production by 1.8 million barrels per day to reduce a global glut that had sent prices crashing.
The U.S. Energy Information Administration (EIA), which defines it as production that can be brought online for 30 days and sustained for at least 90 days, put OPEC's spare capacity at 1.91 million bpd in the first quarter.
According to figures compiled by Platts from market players, Organization of Petroleum Exporting Countries (OPEC) and tanker tracking service companies that monitor crude shipping movements, Nigeria's crude oil production for the month of May plunged by 150,000 barrels per day.
Because the cuts have gone deeper than intended, overall supply from the group would still be about 1 MMbpd below the pre-cuts levels even after the 1.8 MMbbl quota increase, the person said.
It is the second time Trump has directly attacked OPEC over rising oil prices since becoming president, though he has long accused the group of "ripping us off".