Brent crude, the global oil benchmark, was down 0.6% to $74.92 a barrel on London's ICE Futures exchange. Meanwhile, Nigeria's Bonny Light crude oil has maintain an global price of $73.44 per barrel, higher than the Organisation of the Petroleum Exporting Countries (OPEC) basket price of $73.35 per barrel.
Despite potential downward pressure from large producers increasing output, Goldman Sachs maintained its bullish outlook.
US oil exports have boomed in the last two years as shale oil production has surged, with China becoming one of the biggest buyers.
"People probably feared 1.5 million barrels a day", but the current talk indicates a smaller increase, said Torbjorn Kjus, chief oil analyst at DNB ASA.
"Crude oil prices crashed as U.S".
The agency noted that if the 2018 and 2019 forecast annual averages materialize, they would be the highest levels of production on record, surpassing the previous record set in 1970.EIA expects that OPEC crude oil production will average 32.0 million b/d in 2018, a decrease of about 0.4 million bpd from the 2017 level.
An OPEC technical panel has found that global oil demand is on pace to stay strong in the second half of this year, suggesting that the oil market could comfortably absorb a production increase without sending oil prices plummeting, Reuters reported on Tuesday, citing three OPEC sources.
Lower crude oil prices are of course helpful for India.
A cut in Chinese purchases of U.S. oil may also benefit Iran's sales, which Washington is trying to curb with new sanctions it announced in May.
Last year, states could have collected as much as $13.4 billion in additional online sales taxes, according to the Government Accountability Office.
The IEA monthly report stated that oil market is finely balanced and vulnerable to disruption and said OPEC swing producers and others might need to raise their production, even as it noted some factors on the demand side are likely to have a moderating influence.
The next meeting of the parties to the deal will be held on June 23 in Vienna, while the meeting of the OPEC members will take place one day earlier. Saudi Arabia and Russian Federation have already boosted production modestly, and have indicated they were prepared to increase output at that meeting, Reuters reported.
On Saturday, Novak said he and his Saudi counterpart Khalid al-Falih had agreed to propose to the group to up production by 1.5 million bpd beginning in July.
Brent reached a 3-1/2-year high above $80 a barrel last month but has fallen steadily in recent weeks as Saudi Arabia, de facto leader of OPEC, has signaled it intends to raise production to stabilize prices.
The production ceilings have achieved their objective of wiping out excess inventories generated by the 2014 attempt to limit the development of the U.S. shale oil sector by flooding the market with oil. The excess is mostly driven by the collapse in crude oil production in Venezuela.
Moreover, trade tensions between China and the United States increased as the former said it would levy tariffs on some USA goods, including crude and gasoline, as a retaliation to President Donald Trump's $50 billion levy on Chinese imports.