Oil prices fell nearly 2 percent on Thursday’s trading, amid doubts about the possibility of extending the production cut agreement by OPEC's two main crude producers.
At press time, West Texas Intermediate (WTI) crude futures traded at $36.59 per barrel, while the lowest level recorded during the session was at $36.37, witnessing a 1.90 percent slump.
Brent crude reached $39.27 a barrel, while the lowest level recorded during the session was at $39.04, plummeting by about 1.26 percent.
The drop in oil prices came as OPEC and its allies failed to agree to a meeting today to discuss extending the reductions in black gold production, with a Reuters report saying it would be conditional on countries that have not yet met their targets to deepen the pace of supply cuts.
Saudi Arabia and Russia, two of the world's largest oil producers, have agreed to support an extension of crude production cuts of up to 9.7 million barrels per day until July.
Saudi Arabia and other producers such as Kuwait and the UAE are not planning to extend additional voluntary production cuts of 1.18 million barrels per day beyond this month.
Moreover, official data released yesterday revealed that U.S. oil inventories fell in reverse from expectations for the week ended May 29.
U.S. oil inventories fell 2.1 million barrels in the week ended May 29 to 532.3 million barrels, the U.S. Energy Information Administration (EIA) said Wednesday.
Oil inventories in the United States were expected to rise by 3 million barrels in the past week, while gasoline inventories rose by nearly 3 million barrels.
Oil production fell to its lowest level since 2018 due to a drop in crude prices during the last week of last month.
Meanwhile, the dollar
index, which measures the performance of six major currencies against the US
dollar, traded higher at 97.52, while the highest level recorded during the
session was at 97.63.