"You can not place sanctions on two OPEC founder members and still blame OPEC for oil price volatility", he said in a statement to Reuters, referring to itself and Venezuela. The Brent benchmark dipped by $0.69 and was trading at $75.77-a 0.90% decrease on the day.
The Organization of the Petroleum Exporting Countries and some non-OPEC producers, led by Russian Federation, agreed to cut output in 2017 to reduce a supply overhang, which has led to a 60 percent spike in oil prices over the past year.
Oil slipped after Russian Federation was said to propose that OPEC and other producers in a global alliance reverse the supply cuts they've been making since early past year.
OPEC and other producers will meet on June 22-23 in Vienna to discuss future production policy.More news: Total says no impact from farmers' blockade on refinery operations
But the Paris-based IEA, echoing statements from oil producers as well as analyst comment in recent weeks, said there may be a change to the so-called Vienna agreement.
"Saudi Arabia and Russian Federation have already started to lift production", he said.
"While some members appear to be against the idea, we believe that we will see a gradual lifting of cuts", said Warren Patterson, a commodities strategist at ING Bank NV in Amsterdam.
"The prospect of easing supply curbs from OPEC-led producers continues to be reflected in oil's overall depressed price", Lukman Otunuga, analyst at brokerage FXTM said as quoted by Reuters.More news: British lawmakers vote to deny Parliament veto of Brexit deal
"Oil prices are too high, OPEC is at it again".
Last week, the American Petroleum Institute (API) reported a build of 2.028 million barrels of crude oil. That move took US crude from about $50 a barrel in late 2016 to more than $70 in 2018. Russia's production was 11.1 million barrels a day in June, exceeding its quota, according to sources familiar with the matter.
"With rising production from USA shale adding to oil's woes and reviving oversupply concerns, further downside could be a possibility in the short to medium term", Otunuga said.
Official U.S. production and inventory data is due to be published on Wednesday by the Energy Information Administration.More news: First official screenshots for Cyberpunk 2077 released