Brent crude futures were trading down 43 cents, or 0.8 percent, at $53.44 per barrel at 06:43 GMT.
Opec, led by Saudi Arabia and other participating producers, will meet tomorrow and are expected to extend the period of the cut from just the first half of this year to all of 2017 and the first quarter of 2018. Data from the U.S. EIA indicate that maintaining the curbs into the first quarter of 2018 would bring stockpiles back in line with the five-year average - OPEC's stated goal.
Some analysts have stated that the U.S. no longer needs a large supply since the flow in domestic production brought about by shale oil output over the past decade and the cut down in the country's import of crude oil.
OPEC and its allies were close to an agreement to extend their oil-production cuts for another nine months as they seek to prop up prices and revive their economies.
Opec's cuts have helped push oil back above US$50 a barrel this year, giving a fiscal boost to producers, many of which rely heavily on energy revenues and have had to burn through foreign-currency reserves to plug holes in their budgets.
Oil prices fell on Tuesday, pressured by Donald Trump's plans to sell off half the US' oil stockpile over the next decade.
"To maximize budget revenues we would suggest to the White House to copy for once what Mexico does, and to use any price support provided by OPEC cuts to hedge the forward release of SPR barrels", he said. US light crude was up 1 cent at $51.48.
Asked whether deeper cuts were being considered, Marzouq said: "No".
Poulter sets sights on US Open with Wentworth win
The tournament was won by Spain's Alvaro Quiros who defeated Zander Lombard in a play-off to take his seventh European Tour title. Open Championship (July 20-23): The Open returns to Royal Birkdale where Padraig Harrington took down Sergio Garcia in 2008.
The West's energy watchdog, the International Energy Agency (IEA), has said oil market rebalancing was on the way and foresaw a significant drop in stock from current record levels of 3 billion barrels in the next few months.
The plan came out just a day after Trump left Saudi Arabia, the de-facto leader of the Organization of the Petroleum Exporting Countries (OPEC), as part of his first overseas trip. The SPR is stocked with about 688 million barrels of oil and the release could add to the oversupply conditions holding oil prices below $60 per barrel.
The updated agreement can see new countries, including major non-OPEC producer Norway.
The cuts are expected to be extended by nine months under the urging of the Saudi Arabia and Russian Federation, the world's top two oil producers.
A substantial additional cut was unlikely, one OPEC delegate said, "unless Saudi Arabia initiates it with the biggest contribution and is supported by other Gulf members".
Overall, markets will be expecting a 9-month extension of output cuts at the current rate.
Releasing reserves would add supplies to already high and rising US production.
A slump in production from Venezuela may also help other members nod through the new limit, which works out at about1.8mln barrels per day.