Despite record high US crude production, the Organization of Petroleum Exporting Countries has succeeded in clearing the glut, according to the International Energy Agency.
U.S. West Texas Intermediate crude ended Wednesday's session down 36 cents, at $71.84 a barrel.
Brent futures fell 37 cents, or almost 0.5 percent, to $79.20 a barrel by 0636 GMT, after climbing 35 cents on Tuesday. Higher prices are allowing an increasing number of shale oil producers to ramp up production, especially in the United States.
"OPEC+ did a good job, the price of oil reached $80 per barrel".
A freefall in crude production in Venezuela is also impacting oil prices as it is influencing the pace of stock reduction due to which the oil price now "is somewhat above what we forecast", Novak said.
The government, however, is still exploring its options and has asked for the public's understanding of the fact that rising oil prices are something the government can not control.
The current price of oil at $80 a barrel will lead to oversaturation of the market, a balanced market is necessary to reduce it to $65-75 per barrel, the head and principal owner of one of the largest oil traders in the world of Gunvor torbjörn törnqvist.
There have also been reports that members of the Organization of the Petroleum Exporting Countries along with allies such as Russian Federation, known as OPEC+, will discuss easing their output cap at a meeting in Vienna on June 22. The group previously agreed to curb their output by about 1.8 million barrels per day to boost oil prices and clear a supply glut.
Refinery crude runs fell by 7,000 barrels per day, EIA data showed.
Opec is meeting next month to review its earlier production cut.
Gold prices were on the back foot in early dealings on Wednesday, hovering near the lowest levels of the year as investors wait for minutes from the Federal Reserve's meeting for clues on the outlook for US interest rates. The apprehension in India was that OPEC countries, including export leader Saudi Arabia, had persistently denied rising production to offset a price spiral.