Crude prices have fallen after a day of stability, with Libya resuming crude production and drill count increasing in the US.
Benchmark Brent crude oil plummeted by 20 cents to $52.92 a barrel, while US light crude oil also fell by 20 cents to reach $50.04, reported Reuters.
Both oil benchmarks recovered in the previous week expecting that OPEC countries will decide to extend the output-cut deal.
However, oil stock remains high and it may take several months for the OPEC deal to influence global crude prices convincingly.
Currently, OPEC members are producing 1.8 million barrels of oil less to tackle the rising global oil glut. This deal is scheduled to end in June.
The news agency also reported an improvement in Libya's crude output after the state oil company National Oil Corp (NOC) lifted a force majeure on loadings of Sharara oil from the Zawiya terminal.
UBS analyst Giovanni Staunovo was quoted by Reuters as saying: “We believe the implemented production cuts will trigger a material drawdown in OECD oil inventories and thus higher crude oil prices.
“We expect Brent oil prices to rise above $60 a barrel in three months.”
Earlier Baker Hughes indicated that US oil drillers added rigs for an 11th consecutive week that created further pressure on the oil prices.
Image: An offshore oil platform. Photo: courtesy of QR9iudjz0/ FreeImages.com.