However analysts at Goldman Sachs said that even with such a slowdown, and rising U.S. shale production, supply problems would remain - pointing to production losses in Iran as well as Venezuela and Angola.
Since past year, oil has been supported by a deal by the Organization of the Petroleum Exporting Countries, plus Russian Federation and other non-members, to cut output.
This was to spur USA domestic oil production, particularly shale resources, and anything else that can "wean" the U.S. from foreign oil imports.
The International Energy Agency might see its "demand destruction", but only if it is caused by a geopolitical or weather premium spike.
OPEC sees oil's rally towards US$80 a barrel as a short-term spike driven by geopolitics rather than any supply shortage, four OPEC delegates said, a sign the group is not rushing yet to rethink its supply-cutting agreement.
Yet, the biggest story in oil markets this year may well take place far from the much-publicized tensions in the Middle East - namely China's ever-growing oil demand.
Stronger oil prices are also spilling into other markets.
USA crude inventories C-STK-T-EIA dropped by 1.4 million barrels in the week to May 11, to 432.34 million barrels. Better-than-expected data from Asia, including India, and Latin America also prompted OPEC to revise its oil-demand growth in non-OECD nations estimates higher.
From 1999-2007 we saw oil prices rise driven by global demand growth in China and rising prices on average did not slow demand.
A survey of 11 analysts showed Brent crude prices were likely to average $71.22 a barrel this year and $71.26 in 2019, a sharp increase from the $67.40 and $66.39-per-barrel levels forecast in the April poll. A stronger greenback makes it more expensive to buy dollar-denominated commodities like oil. World supply, meanwhile, rose 1.78 million bpd in April from a year earlier, driven predominantly by non-Opec production.
The agency trimmed its 2018 world demand growth projection by 40,000 barrels a day to 1.4 million a day, projecting total consumption at 99.2 million barrels a day.
While it's "too soon to say what will happen this time", the agency said, Iran's fellow OPEC members could fill the gap because their pact to restrain supply leaves them with spare production capacity.
Spot crude oil cargo prices are at their steepest discounts to futures prices in years as sellers are struggling to find buyers for West African, Russian and Kazakh cargoes, while pipeline bottlenecks trap supply in West Texas and Canada. Gasoline stockpiles also shrank last week by 3.79 MMbbl, the EIA reported.
This was the case with Drill, Baby, Drill the slogan, which proved to be popular and gained further prominence after it was used by Republican Vice Presidential nominee Sarah Palin in her debate with Joe Biden in the 2008 US Presidential elections.