Iran also rejected the idea, saying it would continue to produce until it reaches the pre-sanction level.
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In separate data issued yesterday, EIA said it expected a smaller decline of 700,000 barrels per day (bpd) in United States crude oil production in 2016 than the 820,000-bpd drop it forecast a month ago.
In the USA, stock indexes edged higher until about mid-afternoon, when crude oil prices reversed course after an early surge.
U.S. West Texas Intermediate (WTI) crude fell 25 cents, or 0.6 per cent, to settle at $42.77.
WTI, or the West Texas Intermediate benchmark for USA crude, settled down US25 cents, or 0.6 per cent, at $US42.77 a barrel.
Now, Iran’s production has crept back up to 3.6 million barrels a day, nearly 600,000 barrels a day higher since world powers lifted economic restrictions over the country’s nuclear program in January. It lowered its 2017 US oil demand growth forecast to 100,000 bpd from 120,000 bpd previously.
Oil prices were stable early on Wednesday, with a global supply overhang weighing on markets while talk of a potential producer meeting to discuss propping up prices lent crude some support despite being met with scepticism by analysts.
Bond prices rose. The yield on the 10-year Treasury note fell to 1.55 percent from 1.59 late Monday.
Oil prices were supported yesterday by reports that OPEC plans to meet on the side-lines of the International Energy Forum in Algeria in September, on the possibility that an production freeze or cut could be agreed.
But anticipation of the talks could keep prices from falling much further, some analysts say.
Analysts and traders have warned of a glut in both crude and refined oil products this summer, pointing particularly to the lag in U.S. gasoline demand despite the peak season for driving in the United States. “The rebalancing of the market is in progress…as demand remains strong and lower production from non-OPEC members take hold”.
The American Petroleum Institute, an industry group, said late Tuesday that its own data for the week showed a 2- million-barrel increase in crude supplies, a 4-million-barrel decline in gasoline stocks and a 1.5-million-barrel decrease in distillate inventories, according to a market participant.
Total US crude inventories were expected to fall by 1 million barrels in weekly reports, although market intelligence firm Genscape has reported a rise of more than 307,000 barrels at the Cushing, Oklahoma US crude delivery hub, traders said. NRG Energy fell 61 cents, or 4.5 percent, to $12.91, while Southwestern Energy shed 57 cents, or 4.1 percent, to $13.55.
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Both benchmarks rallied almost 3 per cent in the previous session, gaining traction from a rebound late last week after WTI’s fall to April lows beneath $40 a barrel.
