At a gathering scheduled for this weekend in Abu Dhabi, OPEC and allied producers will discuss scenarios including a second production U-turn that would curb output next year, according to delegates.
The United States is determined to push Iranian oil exports to zero, US Special Representative Brian Hook said on Wednesday, through a "calibrated" approach using maximum economic pressure without lifting oil prices.
Iran will not export as much crude as it has been.
Oil markets initially rebounded on Wednesday from their lowest level since August after reports emerged of plans by leading producers Russian Federation and Saudi Arabia to curtail production next year to reverse a recent price plunge.
"We have seen the USA notification including India in the list of countries granted Significant Reduction Exemption for continued purchase of Iranian crude oil without attracting United States sanctions", Ministry of External Affairs' (MEA) Spokesperson Raveesh Kumar said. Growing U.S. supplies "add to rising concerns of output", while "the meeting over the weekend between OPEC and Russian Federation may set the tone for the next OPEC meeting in December".
The January futures for Brent on London's ICE Futures exchange at 12:21 in Kyiv fell by $0,84 (1,19%) to $69,81 per barrel. Prices are also on course for a fifth weekly drop, down 2.8 per cent. The global benchmark crude traded at a $9.93 premium to WTI for the same month.
Global benchmark Brent crude was trading 67 cents lower at $69.98, down 1 percent for the day and more than 19 percent from its recent high.
Preventing crude from rising further, however, was record USA crude production, which hit a whopping 11.6 million bpd in the week ending Nov 2, according to Energy Information Administration (EIA) data released on Wednesday. Domestic production surged to a record 11.6 million barrels a day, while stockpiles at the key storage hub in Cushing, Oklahoma, climbed by 2.42 million barrels. When they meet this weekend, the producers will have to contend with not only the threat of a glut, but also the risk to demand from faltering emerging-market economies and a trade war between the USA and China. Of the fleet's 4,749 ships, 35 per cent are oil tankers. That policy, in place since 2017, helped end a historic oil price collapse that punished USA energy companies and oil-exporting nations alike.
The physical market will start to tighten once Iranian oil finds it hard to reach customers, said the report released by the US JP Morgan Bank.