"Crude oil fell to a three-week low as the stronger USA dollar combined with concerns about rising US crude oil inventories to reduce investor appetite", ANZ said in a note.
Under the deal between OPEC and 11 non-OPEC nations to cut crude oil supply by nearly 1.8 million bpd between January and June, Azerbaijan has pledged to cut 35,000 bpd out of non-OPEC's 558,000 bpd share.
Meanwhile in a note to its clients, ratings agency Fitch also said the recovery in USA drilling activity will drive up shale oil production in the second half of 2017, "offsetting a portion of recent oil price gains". Prices reached the day's high after Iraq's oil minister said OPEC will probably have to extend its output curbs for more than six months. Latest weekly data from oil-field services company Baker Hughes Inc. showed the number of rigs drilling for oil in the US rose by seven to 609.
Energy Minister Suhail Mohamed Al Mazrouei, Russian Energy Minister Alexander Novak, and top executives from major American energy companies including, ExxonMobil, Chevron and ConocoPhillips will also be in attendance. A sharp rise from the US shale patch could undo the Saudi-led deal to reduce the global oil glut. In the USA, producers added more rigs last week, extending a drilling surge into a 10th month, Baker Hughes Inc. said.
A letter from the OPEC Monitoring Committee states that Azerbaijan complies with the terms of the Vienna agreement by 214 percent, according to the Energy Ministry.
Oil's resurgence isn't confined to America.
Most supply growth is expected to come from the United States, where the IEA said shale, or light tight output (LTO), will grow by 1.4 million barrels per day by 2022 even if prices remain close to current levels $60 a barrel and the response from the production side could be stronger still if prices rise.
USA crude futures closed on Friday at $53.33 per barrel.
"They got knocked down on one or two occasions last week but have managed to get up and undoubtedly will continue to fight", the analysts said. "We may see markets tighten around 2020 and spare production capacity shrink big time".