Oil slips on oversupply worries despite OPEC deal

Oil slips on oversupply worries despite OPEC deal

Oil prices fell on Tuesday,pressured by concerns that production cuts by the world’s bigexporters may not be enough to drain a global glut that hasdepressed the market for almost three years.

Benchmark Brent crude was down 45 cents a barrel at$51.84 by 1000 GMT, having gained 14 cents on Monday. U.S. lightcrude was 25 cents lower at $49.55.

The Organization of the Petroleum Exporting Countries andother oil producers, including Russia, agreed last week to keepa tight rein on supply until the end of the first quarter of2018, nine months longer than originally planned.
Collective output by OPEC and other producers will be heldaround 1.8 million barrels per day (bpd) below its level at theend of last year.

But the cutbacks have yet to drain inventories significantlyand prices fell after the OPEC deal was announced. Read more


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