Investing.com - U.S. oil dropped on Monday, after Iraq said it wanted to be exempt from any production freeze deal by the Organization of the Petroleum Exporting Countries.
U.S. crude futures for December delivery were down 0.90% at $50.40 a barrel.
On the ICE Futures Exchange in London, the December Brent contract declined 0.50% to trade at $51.52 a barrel.
The Organization of the Petroleum Exporting Countries is set to hold a meeting on November 30 to further discuss the details of a global output freeze. Iraq is OPEC’s second-biggest producer after Saudi Arabia.
Late last month, OPEC reached an agreement to limit production to a range of 32.5 million to 33.0 million barrels per day in talks held on the sidelines of an energy conference in Algeria.
However, market analysts have been skeptical of the deal, pondering how such a plan would be implemented.
Meanwhile, a strong U.S. dollar also continued to limit the commodity’s gains. The dollar remained broadly supported after New York Fed President William Dudley said last week that the U.S. central bank will likely raise interest rates later this year if the economy remains on its current trajectory.
On Friday, San Francisco Fed President John Williams said that "this year would be good" for a rate rise that he had wanted to take effect last month.
Growing expectations that Hillary Clinton will win the U.S. presidential election have also added to the view that a December rate hike is likely.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 98.56, just off a fresh eight-month peak of 98.82 hit overnight.
Oil prices typically weaken when the U.S. currency strengthens as the dollar-priced commodity becomes more expensive for holders of other currencies.