Investing.com – prices remained lower on Monday, as rising U.S. oil output and fears that efforts to curtail global oil production will not be extended dampened demand for the commodity.
The U.S. West Texas Intermediate crude December contract was down 59 cents or about 1.04% at $56.12 a barrel by 09:50 a.m. ET (13:50 GMT).
Elsewhere, for January delivery on the ICE Futures Exchange in London was down 80 cents or about 1.28% at $61.92 a barrel.
Oil prices remained under pressure amid concerns rising U.S. production would dampen OPEC’s efforts to rid the market of excess supplies.
Domestic U.S. output has rebounded by almost 15% since the most recent low in mid-2016, casting doubts over the past few months’ narrative of tightening energy markets.
Growing concerns that Russia was reluctant to support an extension of an existing OPEC-led production cut agreement also weighed on the commodity.
Under the original terms of the deal, OPEC and 10 other non-OPEC countries led by Russia agreed to cut production by 1.8 million barrels a day (bpd) for six months. The agreement was extended in May of this year for a period of nine more months until March 2018 in a bid to reduce global oil inventories and support oil prices.
Discussions are continuing in the run-up to the Nov. 30 meeting, which oil ministers from OPEC and the participating non-OPEC countries will attend.
In the week ahead, trade volumes are expected to remain light around Thursday’s Thanksgiving holiday and Friday’s shortened trading session.
Elsewhere, were down 1.25% at $1.725 a gallon, while lost 1.39% to $3.054 per million British thermal units.
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Source: Investing.com
