There were about 10 million barrels of Saudi oil cargo that arrived in the USA last week, according to ClipperData, which tracks global shipments.

The rig count has become an important indicator for production amid worries that global oil markets were oversupplied by up to two million barrels per day.

Brent crude oil slumped 2.3 percent after the release of Labor Department data to trade at $39.52 per barrel.

The crude markets will be closed Friday in observance of the Good Friday holiday.

US crude stockpiles increased by 9.36 million barrels to 532.5 million, the highest level since 1930, according to data from the EIA. The higher break-even costs and production costs of United States shale oil producers like Laredo Petroleum (LPI) and Stone Energy (SGY) compared to oil producers in the Middle East has led to the fall in U.S. crude oil production.

The U.S. government's Energy Information Administration (EIA) said crude stockpiles climbed by 9.4 million barrels last week - three times the 3.1 million barrels build forecast by analysts in a Reuters poll.

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Don't be fooled by the recent spike in oil prices.

The dollar's first weekly gain since late February also made oil and other commodities denominated in the greenback less affordable to holders of the euro and other currencies. The IMF said slow demand is only part of the story, with increased supply adding to the negative pressure on crude oil prices, notably from the increase in output from Iran.

Analysts pointed out that the sharp decline in USA gasoline stockpiles suggested demand for refined fuels remained strong.

Those involved in this market have believed the freeze in production from Saudi Arabia and Russian Federation would not have a lasting effect on the crude oil market as the Saudis were technically the only country allowed to adjust the production of crude oil.

The UAE will also attend the meeting to discuss the freeze in Doha on April 17, Energy Minister Suhail Al-Mazrouei said on his Twitter account.