The firmer dollar tone was a significant factor in holding back oil prices.
The global Brent price in the stock market increased to $46.90, up to 2.33 percent at 0400 GMT.
"That arithmetic ought to persuade OPEC and Russian Federation of the value of sticking with it, maybe cutting sufficient extra barrels to offset Libya and Nigeria increases and reaping the reward of higher overall 2017 revenues", said Fyfe. "Disappointment about the slower-than-expected market rebalancing will keep prices depressed well into next year", Carsten Fritsch, an analyst at Commerzbank, told the WSJ.
Erroneously many have been made to believe that the exempt in production cut of two OPEC members, Nigeria and Libya (due to internal crises) contributed significantly to OPEC's inability to achieve desired result of higher crude prices and low inventory. "But this still leaves the question of how did we get it so wrong?" analysts from the bank lamented in a research note Thursday.
To offer a backdrop, the Opec in its May meeting chose to extend output cuts until March 2018.
Despite the dip in US drilling, the total rig count was still more than double the 341 rigs in the same week a year ago, according to energy services firm Baker Hughes Inc.
Kevin Birn, senior director at IHS Markit, says that over the next few years Canadian growth "will only be surpassed by the United States and its tight oil machine", referring to the U.S. industry's unlocking of tightly packed oil deposits in shale and similar rocks.
"I don't think everyone's quite ready to write off the OPEC/non-OPEC accord just yet", John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund, said by telephone.
Oil prices rallied last Friday to register a seventh-straight session gain. Societe Generale SA has also slashed its crude forecasts. Saudi Arabia is the largest OPEC supplier of oil to the United States, shipping a total of 14.5 billion barrels of oil since 1986.
Last week saw U.S. President Donald Trump highlight the nation's energy sector, oil and natural gas in particular. This is going to remain the biggest head-wind for oil prices. Only 17 of the 90 companies in the index have seen gains in their share prices in the second quarter, so it comes as no surprise that energy is the worst performer in the MSCI World Index. In fact, WTI technically entered a bear market when it closed at $42.53 on June 21, marking a 20% decline from its April peak.