Brent crude futures fell 38 cents to $58.64 a barrel by 1001 GMT, having hit $59.49, the highest since July 2015 and more than 34 per cent above the 2017 low.
But even if OPEC decides to extend its cutbacks past the expiry date of March 2018, it will be besieged with problems both old and new: that is the view of Robin M. Mills, CEO of Qamar Energy, who in BloombergView wrote that "the Saudis are increasingly bearing the burden of a deal they can not afford to walk away from" and that OPEC exports during the first half of this year "did not decline almost as much as reported falls in production".
Recep Tayyip Erdogan, the president of Turkey, threatened to cut off the pipeline that carries crude from northern Iraq to foreign markets as part of his opposition to an independence referendum in Kurdistan.
In the 2017 budget, the executive set the crude oil benchmark at 2.2 million barrels per day at a price of $42.5 per barrel, before the National Assembly pushed the benchmark to $44.5 a barrel with hopes that the black gold would remain at its January rate, which was above $50.
The state-owned company calculates weekly fuel prices based on a weighted oil price formula made up of 70 percent Dubai crude and 30 percent Brent crude and adjusts fuel prices upward or downward on a weekly basis, depending on the price of global crude.
The US benchmark West Texas Intermediate (WTI) light sweet crude for November's delivery added $1.56 to settle at $52.22 a barrel on the New York Mercantile Exchange. He said US shale producers shouldn't rely on OPEC and countries outside the cartel to support prices.
Kachikwu noted that even though Nigeria hit 1.802 million barrels per day in the month of August that was not enough justification for a call by some countries for Nigeria to be brought into the fold. The market should worry about compliance if crude rises above $60, Waleed Al-Bader, deputy managing director for marketing, crude oil and petroleum products at Kuwait Petroleum Corp. said in Singapore.
Kong also said emerging markets are in the driving seat on oil consumption.
OPEC has now achieved its goal of flipping Brent crude's market structure into so-called backwardation, said Francisco Blanch, head of commodities and derivatives research at Bank of America Merrill Lynch.
The net long position in USA heating oil rose by a further 5 million barrels to 51 million, the highest since February 2013.
One of the top agenda items at the meeting held on September 22 was to monitor compliance, and OPEC officials were clearly much happier than they were a few months ago. Nigeria will be prepared to cap its crude production when it has stabilised at 1.8 million barrels per day, he said.
Members and non-members of the organisation had first agreed on the production cut in December 2016 to ease the supply glut in the market.