Oil fell amid doubts that prolonged cuts by OPEC and its allies will succeed in clearing a surplus while U.S. output remains so resilient.
Futures lost 2.5 percent in New York and Brent sank to a three-week low in London. While U.S. crude stockpiles are forecast to have extended declines for an eighth week, American drillers continue to add rigs to shale fields. The OPEC-led deal to reduce production has helped to “stabilize the situation on the world hydrocarbons market,” Russian President Vladimir Putin said at a meeting in Moscow with Saudi Arabia’s Deputy Crown Prince Mohammed bin Salman.
Oil fell after last week’s agreement to prolong supply curbs for nine months by the Organization of Petroleum Exporting Countries and its partners disappointed investors hoping for more. Saudi Arabia’s Energy Minister Khalid Al-Falih said the cuts are working and predicted global inventories will fall to the five-year average early next year.
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