Oil prices fell as U.S. crude inventories showed a build despite efforts by producer cartel OPEC to reduce production and tighten the market.
U.S. WTI crude futures traded at $51.08 per barrel, falling by 22 cents or 0.4 percent from their last close. Meanwhile, Brent crude futures traded down 32 cents or 0.6 percent at $56.62 from the preceding finish.
Beginning this year, the cartel, along with non-OPEC producers have agreed to lower production by 1.8 million bpd to bolster prices. The historic agreement has helped to bolster oil prices from the $30-$40 per barrel range in late 2016 and early this year. However, traders said global stocks continue to be overflowing despite these efforts, particularly due to the increasing U.S. production.
Due to the current conditions, OPEC is widely anticipated to extend the production cuts beyond the present set expiry of March 2018.
In the supply front, OPEC member' Venezuela's production is threatened by an economic and political crisis, and the government is currently at a standoff with the Trump administration.
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