Crude oil prices fell to three month lows on March 13 as traders doubted that agreed cuts by Organization of Petroleum Exporting Countries and non-OPEC members would significantly reduce the oil supply glut offsetting rising US supplies.
Brent crude fell 6 cents to $51.31 a barrel by 1:30 p.m. Eastern (1730 GMT), having earlier hit a session low of $50.85, the lowest level since November 30. WTI fell 17 cents to $48.32 a barrel, Reuters reported. It quoted Goldman Sachs as saying in a note it remained “very confident” about commodity prices and maintained its price forecast of $57.50 for WTI in the second quarter.
US drillers added oil rigs for an eighth consecutive week, Baker Hughes data showed on March 10.
In November, OPEC and some members outside the oil cartel, including Russia, reached an agreement to cut output by almost 1.8 million barrels per day in the first half of 2017.
Meanwhile, Kuwait’s Oil Minister Essam al-Marzouk reportedly has said the country supports extending the current OPEC oil production cut beyond its June deadline. KUNA quoted him as saying Marzouk in an interview the results of the deal agreed by OPEC and non-OPEC members had been “very positive so far” and would bear fruit in the coming months. Kuwait supports extending the agreement after its June expiry date to help rebalance the global market, he added.