TOKYO May 1 Oil prices edged down on Monday on
worries that OPEC-led production cuts may not significantly
tighten an oversupplied market in the short term despite talk of
NYMEX crude for June delivery was down 12 cents at
$49.21 a barrel by 0032 GMT, after settling up 36 cents on
Friday. The contract is up about 2 percent from a one-month low
hit on Thursday.
London Brent crude for new front-month delivery in July
was down 14 cents at $51.91.
Iran's oil minister said on Saturday that OPEC and non-OPEC
countries had given positive signals for an extension of output
cuts, which Tehran would also back.
The Organization of the Petroleum Exporting Countries
(OPEC)meets this month to discuss oil supply policy.
If OPEC agrees to extend the cuts, then bloated global
inventories could drain by the end of the year, a Reuters poll
of economists and analysts showed.
Saudi Arabia's Energy Minister Khalid al-Falih said on
Saturday there was consensus with Central Asia over oil markets
and production levels.
Falih, who had arrived on a visit to Turkmenistan earlier
and is on a tour of Central Asian nations, also tweeted there
was agreement with the region on the necessity of sticking to
Oil prices have got no firm support from rising geopolitical
tensions surrounding North Korea. U.S. President Donald Trump on
Sunday stepped up outreach to allies in Asia to secure their
cooperation to pressure North Korea over its nuclear and missile
Trump's calls to the two Asian leaders came after North
Korea test-launched another missile that Washington and Seoul
said was unsuccessful but which drew widespread international
Money managers cut their net long U.S. crude futures and
options positions for the first time in four weeks in the week
to April 25, the U.S. Commodity Futures Trading Commission
(CFTC) said on Friday.
(Reporting by Osamu Tsukimori; Editing by Joseph Radford)