SINGAPORE Dec 7 Oil prices fell on Wednesday on
persistent doubts a planned crude production cut led by OPEC and
Russia would be deep enough to end a supply overhang that has
dogged markets for over two years.
International Brent crude oil futures were trading
at $53.69 per barrel at 0131 GMT, down 24 cents, or 0.45
percent, from their last close.
U.S. West Texas Intermediate (WTI) crude futures were
down 19 cents, or 0.37 percent, at 50.74 per barrel.
Oil prices shot up as much as 19 percent after the
Organization of the Petroleum Exporting Countries (OPEC) and
Russia last week announced they would jointly cut production
next year in an attempt to prop up markets.
However, doubts have since emerged about whether the planned
cuts will be big enough to end oversupply as both OPEC and
Russia have since reported record production.
"With both Russia and OPEC producing at record amounts, the
market is scratching its head about how both blocs will manage
to comply with the Vienna production cut targets. The point is
valid, as the more OPEC and Russia produce, the higher the
starting point will be to have to cut from," said Jeffrey
Halley, senior market analyst at brokerage OANDA in Singapore.
(Reporting by Henning Gloystein; Editing by Joseph Radford)