West Texas Intermediate, the US benchmark for the price of oil, was down 1.13 percent to $67.11 per barrel.
With a growing economic crisis in Venezuela, the country, long a major oil producer, has dramatically decreased its crude production.
To be certain of this, Saudi Arabia keeps advocating for the reduction of oil production from the Organisation of Petroleum Exporting Countries (OPEC), which for the first time, have been really effective through various agreements signed among the OPEC member states.
Saudi Arabia, recently made a decision to do an initial public offering (IPO) of its state-owned company Aramco, and the future valorisation of the company will be based on the price of oil.
U.S. West Texas Intermediate crude was up 10 cents, at 66.83 dollars a barrel. There is no settlement Monday because of the U.S. Memorial Day holiday. Prices dropped $2.83 to $67.88 on Friday, the biggest loss since July 5.
July WTI futures volume already tops 70,000 contracts - more than 420% of the 10-day average for this time of day - a feat even more impressive given that it's a public holiday in both London and NY.
Oil prices surged to their highest level in over three years last week, and strategists were marveling that prices had shot up so quickly. The spread between the two contracts reached $9.38 a barrel, its widest since March 2015.
Crude output in the Bolivian republic has dropped to about 1.4 million bpd in recent months and by almost 40 percent since 2015, causing Parker to add that total collapse is "entirely possible". The analyst said such a scenario remained "entirely possible".More news: White House Lawyer Joins Secret Briefings About FBI Informant
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Russian Energy Minister Alexander Novak said on Saturday that a return to October 2016 production levels, the baseline for the current supply pact, was one option for easing curbs.
Excess cuts amounted to about 740,000 barrels a day in April, according to estimates from the IEA.
The drop in oil prices is welcome news for drivers, as well as companies and countries that buy a lot of energy.
Sources familiar with the matter said an increase of about 1 million bpd would lower compliance to 100 percent of the agreed level. A gradual implementation of a plan to boost output by 1 million barrels a day would still leave the market in deficit through the third quarter of 2018, according to Goldman.
Saudi Aramco, the state-owned producer of the world's largest crude exporter, will release its official selling prices (OSPs) for July-loading cargoes, and these in turn largely set the prices for much of the exports from the Middle East.
USA energy companies added 15 rigs looking for new oil in the week ended May 25, bringing the rig-count to 859, the highest level since 2015, in a strong indicator that American crude production will continue to rise.
Hedge funds trimmed their net-long positions - the difference between bets on a price increase and wagers on a drop - in Brent crude by the most in nearly a year.