Under pressure as OPEC decides whether to extend its production cuts, crude oil prices dropped on Monday, according to Bloomberg MarketWatch.
May West Texas Intermediate crude fell 24 cents, or 0.5%, to settle at $47.73 a barrel on the New York Mercantile Exchange.
May Brent crude, the global benchmark, lost 5 cents, or 0.1%, to end trading at $50.75 a barrel on the London ICE Futures Exchange.
On Sunday, five national representatives met to review the current level of compliance with the OPEC output agreement. Countries represented at the meeting included Kuwait, Algeria, Venezuela and non-OPEC nations Russia and Oman. OPEC officials urged members to cut oil production in line with last year’s agreement. The group will convene again in late April to recommend whether cuts need to be extended another six months.
“OPEC members increasingly indicated support for extending the cut beyond the current end date in June,” said Chiorando. “While an extension remains uncertain, OPEC members appear to be largely in favor and will be keen to press ahead if they can secure support from the 11 nonmembers who have aligned themselves with the drive.”
Meanwhile, “growth in U.S. shale production continues to offset OPEC’s efforts,” said Enrico Chiorando, an energy analyst with Love Energy.
April natural gas settled at $3.052 per million British thermal units, down 0.8%, on the New York Mercantile Exchange.