As populist candidates and parties continue to perform well in elections across Europe and the US, the impact this shift will have on the workings of the world economy still remain unclear.

Evidently, WTI prices remain below the psychological $50 mark as oversupply worries continue to dent sentiment. Russian Federation and 10 other non-OPEC producers agreed to cut half as much.

OPEC next meets to decide output policy on May 25 in Vienna.

Meanwhile, the deal between Opec and non-Opec producers, which was agreed late past year and aimed to curb production, appears to be having little effect on the glut at the moment, with three of the last four weeks showing substantial inventory increases. It however clarified that that the excess production went into stockpiles and that it intends to stick to its deal.

"An extension is needed to balance the market", an OPEC delegate said. But non-Opec countries, some of which have also signed the output freeze deal, could undermine the deal.

In terms of output, the IEA noted that member countries of the Opec oil-producing cartel cut their production for the second month in a row.

The US oil output also increased to 9.1 million barrels per day (BPD) from 8.5 million BPD in June 2016.

Opec has raised its 2017 estimates for oil production from outside of the cartel as U.S. shale drillers ramp up activity in response to higher prices, underlining the threat to the group's attempts to balance the market.

On the inventory side, it remains to be seen if reduced Opec supply leads to significant inventory drawdown in the coming months.

Industry players at the meeting aired their concerns that growing USA output may thwart OPEC's efforts to trim stockpiles and raise prices, an idea underpinned by US government data released during the week showing inventories at record-high levels.

The group wants stocks in the industrialised world to fall to the average of the past five years.

United States oil stocks fell marginally last week after increasing for nine straight weeks but are still near a record high.

In other related vegetable oils, soybean oil on the Chicago Board of Trade climbed as much as 0.9 percent, while the September soybean oil contract on the Dalian Commodity Exchange rose up to 0.8 percent. Those bets, measuring futures and options positions, indicated that investors expected prices to rise.

Looking ahead, given the excessive long positions in the market, it was natural that some of those positions got liquidated in the absence of positive triggers over the past several weeks.