"There is room for [prices in] the crude market to soften a bit more", says John Woods of JJ Woods Associates, adding that inventories could rise further as refineries head toward maintenance season after the summer driving season.
Crude oil futures for September delivery ended up $0.16, or 0.2% at $69.17 a barrel.
The total reduction will depend on whether major buyers of Iranian oil in Asia receive sanctions waivers that would still allow some imports.
"This "Big 3" coordinated oil market management in response to a move out of the $70-80/b Brent range does provide some gravitational pull for prices to move back into this range, as was demonstrated last month by the Saudi announcement that it was prepared to adjust exports to meet rapidly changing market condition".
For the production expectations, the EIA on Tuesday slightly lowered its 2018 expectation for average 2018 United States crude output to 10.69 million barrels per day.
Crude oil prices were moving between small gains and losses ahead of the start of trading in NY.
Singapore-based brokerage Phillip Futures said an escalating trade dispute between the United States and China has "unnerved investors on the prospect of lowered global oil demand growth".
Some analysts said that global crude supply losses could range from 600,000 to 1.5 million barrels per day due to the re-imposition of US sanctions on Iran.
Oil markets have entered a brief period of calm but a storm might be looming later this year when new USA sanctions are poised to slash supplies of Iranian oil, the International Energy Agency said on Friday.
Exports to Japan surged to a seven-month high as refiners rushed to secure as many cargoes as possible before USA sanctions are re-applied. From November, Washington will also target Iran's petroleum sector.
Many energy analysts believe new sanctions will remove far less of Iran's barrels than the last time when about half its oil exports were erased from the market as a result of USA and European sanctions.
Oil from American fields was among goods the Chinese had designated as subject to eventual tariffs on a list in June. While Saudi Arabia was said to cut production last month despite a pledge in June by the Organization of the Petroleum Exporting Countries and allies to add more barrels, Russian Federation said it has the capacity to lift output to a post-Soviet record.
Later on Wednesday, the Energy Information Administration, or EIA, is set to release official USA fuel storage data.
Alhajji said "The July production numbers show a large increase in OPEC production close to 300,000 barrels per day, but exports increased only slightly, preventing prices from declining further".
Meanwhile, EIA reported surprising build of 2.9 million barrels of gasoline while the market's expectation was 1.1 million barrels of draw. This is something that the market desperately needed, after getting slammed the previous day.