At the same time, output from the world's top-three producers, Russian Federation the United States and Saudi Arabia, is rising.
In the United States, crude production increased to 11.6 million barrels per day last week, the highest level on record, according to Energy Information Administration data.
That's a threefold increase from the USA low reached a decade ago, and a 22.2 per cent rise just this year.
But it is not only the United States that has meaningfully raised oil production in recent weeks.
Still, analysts think the scenario will change now that the mid terms are over: Joe McMonigle, analyst at Hedgeye, stated in a note, "OPEC was feeling the Trump pressure but producers took action with the thinking that they just needed to get past the US election". EIA now sees the nation's output averaging 12.1 million barrels per day (Mmbpd) next year, up from last month's forecast of 11.5 Mmbpd.
Brent futures for January settlement edged up 9 cents to $70.74 a barrel on the London-based ICE Futures Europe exchange.
A barrel of USA light crude oil, which hit a near four-year high of $76.41 on 3 October, was today trading as low as $60.06, representing a drop of 21%. To put that in context, the BP Statistical Review of World Energy 2018 puts global daily crude production at 92.6 million barrels per day for past year, so the increase is meaningful.
The sources said the United States wants India to restrict its monthly purchases of Iranian oil to 1.25 million tonnes, or 9 million barrels, during the waiver period from November.
The Trump administration on Monday reinstated sanctions on Iran's energy, banking and shipping industries, marking the end of a 180-day grace period the USA set for oil buyers to reduce to zero imports from Iran.
"We also saw demand from China's independent refineries rise", it added. At the same time, nationwide stockpiles rose 5.8 million barrels last week, compared to a 2-million-barrel gain expected in a Bloomberg survey. Specifically, Trump relies on top exporter Saudi Arabia to leverage its influence over other OPEC members to increase output and prevent oil prices from spiking as Iran's exports dwindle. Mr. Hook explained that with global insurers gone, Iranian tankers are now relying on domestic insurances which according to the State Department will not be able to monetarily protect countries that allow Iranian vessels to post should a maritime accident such as an oil spill takes place. "OPEC and Russian Federation may use cuts to support $70 per barrel", said Ole Hansen, head of commodity strategy at Saxo Bank.