Oil fell further
towards $50 a barrel on Monday, pressured by uncertainty over whether an
OPEC-led production cut will be extended beyond June in an effort to
counter a glut of crude.
A
committee of ministers from OPEC and outside producers agreed on Sunday
to look at prolonging the deal, stopping short of an earlier draft
statement that said the committee recommended keeping the measure in
place.
International benchmark Brent crude was down 19 cents at $50.61 by 0857 GMT, after falling as low as $50.26. U.S. crude was down 31 cents at $47.66.
A number of ministers from the Organization of the Petroleum Exporting Countries and other producers met in Kuwait to review the progress of their supply cut, which initially runs until the end of June.
OPEC and 11 other producers including Russia agreed in December to reduce their combined output by almost 1.8 million barrels per day in the first half of this year.
While many in OPEC have called for prolonging the curbs, Russia has been less definitive. Energy Minister Alexander Novak said on Sunday it was too early to say whether there would be an extension.
Oil also came under pressure from further evidence that higher prices as a result of the OPEC-led supply cut are helping boost supplies in the United States.
U.S. drillers added oil rigs for a 10th week in a row, data from energy services firm Baker Hughes showed on Friday, as energy companies boost spending on new production.
Because of higher U.S. output and the cuts by OPEC, the discount of U.S. crude to Brent has grown to around $2.90 per barrel, heading for its widest close since late 2015.
International benchmark Brent crude was down 19 cents at $50.61 by 0857 GMT, after falling as low as $50.26. U.S. crude was down 31 cents at $47.66.
A number of ministers from the Organization of the Petroleum Exporting Countries and other producers met in Kuwait to review the progress of their supply cut, which initially runs until the end of June.
OPEC and 11 other producers including Russia agreed in December to reduce their combined output by almost 1.8 million barrels per day in the first half of this year.
While many in OPEC have called for prolonging the curbs, Russia has been less definitive. Energy Minister Alexander Novak said on Sunday it was too early to say whether there would be an extension.
Oil also came under pressure from further evidence that higher prices as a result of the OPEC-led supply cut are helping boost supplies in the United States.
U.S. drillers added oil rigs for a 10th week in a row, data from energy services firm Baker Hughes showed on Friday, as energy companies boost spending on new production.
Because of higher U.S. output and the cuts by OPEC, the discount of U.S. crude to Brent has grown to around $2.90 per barrel, heading for its widest close since late 2015.
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