Oil down on output cut doubts, expected U.S. production rise
Oil prices were down on Monday due to doubts that large crude producers will reduce production as promised and on expectations that U.S. production would increase again this year, Reuters reported.
The Organization of the Petroleum Exporting Countries (OPEC) has agreed to cut production by 1.2 million barrels per day (bpd) to 32.5 million bpd from Jan. 1 in an attempt to clear global oversupply that has depressed prices for more than two years.
Russia and other key exporters outside OPEC have said they will also cut output.
But global oil production remains high and, with inventories near record levels in many areas, investors doubt that OPEC and its allies can trim output enough to push up prices.
Benchmark Brent crude oil LCOc1 was down 4 cents a barrel at $55.41 by 11:14 a.m. EST and U.S. West Texas Intermediate crude CLc1 was down 10 cents at $52.27 a barrel.