Eleven non-OPEC oil producing countries cooperated with the 13 OPEC member countries in an effort to accelerate the stabilisation of the global oil market through adjustments in oil production of around 1.8 million barrels per day.
Barclays also cut its expectations for the next two years, reducing Brent forecasts to $52 a barrel for both years from a previous level of $55 for 2017 and $57 for 2018.
"For sure, it does not help the current bearish sentiment", Ole Sloth Hansen, an analyst at Saxo Bank A/S in Copenhagen, said of Saudi Arabia's reported production level. US output in the week through June 30 increased by the most since January, offsetting a decline in crude stockpiles.
OPEC and Russian Federation are leading the effort to stabilize crude oil prices which have more than halved since 2014.
"The market right now is questioning the efficacy of Opec's supply cuts", Tchilinguirian said.
Given ongoing oversupply, analysts said that the market was still some way off from finding a closer balance between demand and available supplies. Saudi exports have been falling and will continue to do so in the third quarter, he said.
There were further reports that Nigerian and Libyan output could be capped, although overall confidence in any action remained low.
On December 1, 2016, the Ministry of Petroleum Resources announced the decision of the OPEC (Organization of Petroleum Exporting Countries) after strategic negotiations to exempt Nigeria from the oil output cut agreement. "A real supply manager would be cutting supply further, but Riyadh understandably refuses to do so without collective contributions". Russia's Energy Ministry has no objections to inviting new members to the Joint OPEC-Non-OPEC Ministerial Monitoring Committee due on July 24 in Russia's St. Petersburg, Minister Alexander Novak said Monday.
Deepening output cuts already agreed to by OPEC and partners is not on the agenda for the July 24 meeting, said Almarzouq. "I just have the sense that Khalid al-Falih thinks he has done enough and has a different timeline".