Oil prices have gained almost 20 percent this year, driven primarily by coordinated supply cuts by the Organization of the Petroleum Exporting Countries (OPEC) and partners including Russian Federation.
Concerns about US sanctions pressure on Iran, one of the top producers in the Organization of Petroleum Exporting Countries, and a historic decline in production from Venezuela helped push the price of Brent crude oil toward $80 in recent sessions.
Brent pushed past $80 a barrel last week for the first time since 2014, and the market may again try to clear that hurdle, said Gene McGillian, vice president of research at Tradition Energy in Stamford, Connecticut.
World oil prices decline on May 23, investors win back a report on a possible decision by OPEC to increase oil production.
The U.S. and Venezuela expelled each other's top diplomats after President Donald Trump's administration imposed sanctions in the wake of a disputed election in the Latin American nation.
Hedge funds trimmed their net-long position - the difference between bets on a price increase and wagers on a drop - in Brent crude by the most in nearly a year.
USA crude stockpiles are forecast to have declined by 2.8 million barrels last week, which would be the third straight weekly fall.
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He argued that Trump's style was "all about creating drama and attention and pressure and then cutting some kind of deal". Mnuchin still led the talks, but reports surfaced that Navarro and Kudlow were excluded from some of the meetings.
The U.S. plans to reimpose sanctions on major oil producer Iran, while an economic crisis has slashed Venezuela's crude output.
At a time when India is looking at ways to keep rising fuel prices in check, a further increase in the per barrel price of crude oil (the deciding factor of domestic oil prices) may bring more pain for consumers in the future. Crude stocks at the Cushing, Oklahoma, delivery hub fell by 1.123 million barrels.
"It does seem like any move above $80 attracts selling interest right now and that could potentially lead us to a period of consolidation, where I think $77.50 or even $75 might be in focus", Saxo Bank senior manager Ole Hansen said.
USA refineries produced about 10 million barrels of gasoline a day last week, down by about 500,000 barrels compared to the prior week.
"Whether it's a million barrels more or less, we think we'll have to wait until June before making that announcement", he said.
OPEC and non-OPEC producers reached an agreement in December 2016 to curtail oil output jointly and ease a global glut after more than two years of low prices.