Oil prices have fallen after a day of high gains, over the possibility that US producers may increase crude production.

Brent crude futures slipped by 82 cents to $54.65 a barrel, reported Reuters.

US West Texas Intermediate (WTI) crude oil futures also fell by 80 cents to reach $51.68 per barrel. 

US Energy Information Administration noted that domestic firms are increasing their drilling activities after oil prices started recovering to touch an 18-month peak.

In the next month, production is set to increase to 40,750bpd after witnessing a three-month decline.

"In the next month, production is set to increase to 40,750bpd after witnessing a three-month decline."

President-elect Donald Trump's nominee for interior secretary Ryan Zinke also stated that he will consider expanding energy drilling and mining activities without affecting environment.

Oil prices started increasing after OPEC and prominent non-OPEC oil exporting countries decided to cut production by 1.8 million bpd for six months.

A committee to review the agreement compliance is scheduled to meet in Vienna this weekend.

BMI Research opined that the reduction in output will be largely from the field and refinery maintenance. OPEC's monthly oil markets report is expected to be released this week.