"U.S. oil stocks are swelling due to an upswing in crude inventories. the glut alarm bells are ringing louder in the U.S.", PVM Oil Associates strategist Stephen Brennock said.
U.S. West Texas Intermediate crude futures (WTI) ended 31 cents, or 0.5%, lower at $63.60 a barrel, up from its $62.77 session low. Al-Falih, however, reiterated that it's too early to project details about production levels and quotas.
During a live broadcast Tuesday, Iranian President Hassan Rouhani confirmed his country will continue to export crude oil.
Over the last 10 weeks, hedge funds have been furiously amassing oil futures contracts counting on OPEC exceeding its planned production cuts, Venezuela's production drying up, Libya's supply continuing to deteriorate, and global oil demand growth continuing unabated.
U.S. President Donald Trump's administration re-imposed sanctions on Iran's oil exports in November - the last step in a series of measures that were imposed back on Iran after Trump had announced in May that he would be pulling the United States out from the Joint Comprehensive Plan of Action, or nuclear deal. Oil refiners in the USA are using more light crude to fill the gap from the sludgy, sulfurous stuff they used to get from OPEC.
USA sanctions on Iran could boost oil prices and inflation to a point that hurts the common person in India, the country's ambassador to the United States said on Tuesday, after the Trump administration said it would end waivers for Iran's oil buyers.
USA special envoy for Afghanistan to visit in May for peace process
Two weeks ago an announcement from the Taliban instructed its fighters to launch "Jihadi operations with sincerity and pure intentions".
Meanwhile, Bob Dudley, chief executive officer at BP, told Bloomberg television that oil prices of late have been "extremely volatile", and he predicted that all factors considered, oil will be "in the fairway of $60-$75" per barrel for 2019.
India's Petroleum and Natural Gas Minister Dharmendra Pradhan said last week that India will get additional supplies from other major oil-producing countries to compensate for the loss of Iranian crude.
The White House said after its Iran move it was working with Saudi Arabia and the United Arab Emirates to ensure oil markets were "adequately supplied", but traders worry about tight supplies.
The action is meant to wipe out Iran's oil exports as part of USA -led efforts to compel Tehran to give up nuclear and ballistic missile programs. Traders were looking for a 2.093 million barrel build.
The 14-member group pumped 30.23 million bpd this month, the survey showed, down 90,000bpd from March and the lowest Opec total since 2015.
Supplies from the USA jumped more than fourfold to 6.4 mt in the 2018-19 fiscal year. "It will ultimately end up with more oil on the market, but short-term the knee-jerk movement for prices is still up".