LONDON (Reuters) – Oil prices fell yesterday, pressured by concerns that production cuts by the world’s big exporters may not be enough to drain a global glut that has depressed the market for almost three years.
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Benchmark Brent crude was down 45 cents a barrel at $51.84 by 10:00 GMT, having gained 14 cents on Monday. US light crude was 25 cents lower at $49.55.
The Organisation of the Petroleum Exporting Countries and other oil producers, including Russia, agreed last week to keep a tight rein on supply until the end of the first quarter of 2018, nine months longer than originally planned.
Collective output by OPEC and other producers will be held around 1.8 million barrels per day (bpd) below its level at the end of last year.
But the cutbacks have yet to drain inventories significantly and prices fell after the OPEC deal was announced.