The Trump administration is considering a diplomatic push to get Saudi Arabia to close its taps and using the threat of sanctions on Russia to force them to reduce output, the Wall Street Journal reported.
Saudi Arabia said it will boost its crude supply in April to a record rate and its oil exports are also set to hit a new high in May.
"It’s a problem of an oil price war in the middle of a constricting market when the walls are closing in," said Daniel Yergin, who is also vice chairman of IHS Markit.
For the most part, oil is a top income source for members of OPEC and such a dramatic fall in prices will put a strain on their economies.
The downward revision came as oil prices dropped as much as third in their biggest one-day fall since the 1991 Gulf War.
The world's top producers including Saudi Arabia, Russia and other Middle East producers were last locked in a market share war between 2014 and 2016.