Oil prices slipped on Monday as further increases in U.S. drilling activity undercut an OPEC-led push to tighten supply.
Trading
was subdued due to public holidays in China, the United States and
Britain, but concerns lingered over whether OPEC action would be enough
to stem the tide of oversupply.
Brent crude futures LCOc1 were trading down 19 cents at $51.96 per barrel at 0857 GMT. The contract ended the previous week down nearly 3 percent.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were also down 19 cents at $49.61 per barrel. Despite ongoing cuts, oil prices have not risen much beyond $50 per barrel.
The Organization of the Petroleum Exporting Countries and some non-OPEC producers pledged last week to extend production cuts of around 1.8 million barrels per day (bpd) until March 2018.
An initial agreement, in place since January, would have expired in June this year.
Commerzbank analyst Carsten Fritsch called Monday's price moves little more than "intraday noise" but said hints of deeper cuts or a longer extension from OPEC left the market deflated after the final decision.
OPEC's success in drawing down inventories may hinge on output in the United States C-OUT-T-EIA, which is not participating in the cuts. U.S. production has soared 10 percent since mid-2016 to more than 9.3 million bpd, close to top producer levels Russia and Saudi Arabia.
U.S. drillers have added rigs for 19 straight weeks, bringing the total 722, the highest number since April 2015 and the longest run of additions on record, according to energy services firm Baker Hughes Inc (BHI.N).
Brent crude futures LCOc1 were trading down 19 cents at $51.96 per barrel at 0857 GMT. The contract ended the previous week down nearly 3 percent.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were also down 19 cents at $49.61 per barrel. Despite ongoing cuts, oil prices have not risen much beyond $50 per barrel.
The Organization of the Petroleum Exporting Countries and some non-OPEC producers pledged last week to extend production cuts of around 1.8 million barrels per day (bpd) until March 2018.
An initial agreement, in place since January, would have expired in June this year.
Commerzbank analyst Carsten Fritsch called Monday's price moves little more than "intraday noise" but said hints of deeper cuts or a longer extension from OPEC left the market deflated after the final decision.
OPEC's success in drawing down inventories may hinge on output in the United States C-OUT-T-EIA, which is not participating in the cuts. U.S. production has soared 10 percent since mid-2016 to more than 9.3 million bpd, close to top producer levels Russia and Saudi Arabia.
U.S. drillers have added rigs for 19 straight weeks, bringing the total 722, the highest number since April 2015 and the longest run of additions on record, according to energy services firm Baker Hughes Inc (BHI.N).
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