Investing.com - Oil prices lost ground on Monday as a reported delay in a key meeting to extend production cuts by major exporters raised uncertainty over the agreement.
New York-traded West Texas Intermediate crude futures fell 49 cents, or 0.9%, at $52.02 a barrel by 8:10 AM ET (12:10 GMT), while Brent crude futures, the benchmark for oil prices outside the U.S. lost 53 cents, or 0.9%, to $61.48.
“We are hoping that we will reach consensus to extend our agreement when we meet in two-weeks-time in Vienna,” Saudi Energy Mi nister Khalid al-Falih told reporters on the sideline of a G20 energy and environment ministerial meeting in Japan, according to Reuters.
Asked when the meeting will be held, he said: “Probably the first week of July."
The remarks appeared a step back from comments at the beginning of June that members of production cut agreement were “close” to reaching an understanding.
Falih indicated a week ago that Russia, who leads non-OPEC members in the pact, was the only party still undecided.
The reference to July served as confirmation of weeks of speculation that the original dates for the meeting - June 25 for OPEC with non-OPEC members joining the following day - would be delayed at Russia’s request. OPEC has yet to change the formally change the official schedule.
“The longer OPEC delays having that meeting, the more doubt there will be that it has enough support from its members and allies to extend cuts critical to offset some of that plentiful oil supply Falih spoke about,” Investing.com senior commodity analyst Barani Krishnan said.
Oil prices have been under pressure from signs of weakening global demand and U.S. production at record levels. U.S. crude is down nearly 22% from highs seen April, with the Brent barrel close behind with almost a 19% decline. According to CFTC data published Friday, speculative net long positions in crude oil fell for a seventh straight week last to stand at their lowest level since early March.
The International Energy Agency warned in its monthly report released on Friday that outlook for oil demand growth in 2019 has dimmed due to worsening prospects for world trade. Over the weekend, U.S. Commerce Secretary Wilbur Ross played down the likelihood of President Donald Trump and Chinese counterpart Xi Jinping reaching a deal at the G20 meeting on June 28 and 29. He reiterated Trump was “perfectly happy” to stick with his current tariff strategy.
Elsewhere, Iran announced Monday that it will break the internationally-agreed limit on its stocks of enriched uranium in 10 days unless Europe takes steps to help it mitigate the economic impact of U.S. sanctions.
Tehran had previously threatened to renege on the nuclear deal after the Trump administration withdrew from the pact last year and imposed economic sanctions.
U.S. Secretary of State Mike Pompeo said Sunday that the U.S. is “considering a full range of options”, including military ones, with regard to iran, which he has accused of attacking two oil tankers near the Persian Gulf last week. Iran has denied the accusations.
In other energy trading, gasoline futures declined 0.9% at $1.7165 a gallon by 8:12 AM ET (12:12 GMT), while heating oil traded down 0.8% at $1.8152 a gallon.
Lastly, natural gas futures lost 0.8% at $2.367 per million British thermal unit.