Riyadh is leading an effort by the Organization of the Petroleum Exporting Countries, Russia and other oil producers to cut output by nearly 1.8 million bpd until March 2018 to curb oversupply.
He said that US refinery inputs hit a record last week, with the amount of crude processed at just over 1 million barrels a day more than the same time past year.
Sign up now and get breaking news alerts delivered to your inbox. Output at major American shale fields will reach a record in July, according to the EIA. He said at OPEC's meeting in late May that there would be a "marked" decrease in the kingdom's shipments to the U.S.
As of mid-morning Wednesday, U.S. Brent crude was down $1.53 a barrel, or 3.1%, at $47.19.
Year to date, gasoline prices have traded between a low of $2.26 and a high of about $2.42 a gallon, said Kloza, but he believes "both extremes will give way".
The currency used to express re-balancing is the five-year average level of oil stocks.
Arab nations add names to terror list amid Qatar dispute
Secretary of State Rex Tillerson, who as Exxon Mobil's CEO had business with Qatar, as a possible mediator. Mauritania broke off diplomatic ties with Qatar while Jordan downgraded ties with the country on June 6.
The International Energy Agency on Wednesday said it expected growth in non-OPEC supply to be higher next year than growth in overall global demand.
Producers hedge by buying a variety of financial options to secure a minimum price for crude and safeguard future production.
Sentiment, however, turned negative later during the session, following OPEC's monthly report showing that output from the group rose by 336,000 barrels a day in May to 32.14 million barrels per day (bdp).
Earlier this month, seven Muslim countries, including Saudi Arabia, the United Arab Emirates and Bahrain broke off diplomatic relations with Qatar over alleged support of terrorist groups, a charge denied by Doha.
"Not only are [U.S.] producers increasing spending more sharply than initially thought, the pace and duration of new rig additions and drilling activity has exceeded all expectations", it added.
The US output has also jumped in the last one year by 10% to 9.3 million bpd.
Michael Tran, director of global energy strategy at RBC Capital Markets, says prices are too low now for producers to lock in large volumes of future production, and pent-up demand for hedging will pressure any moves higher in the oil market.