By Neanda Salvaterra and Dan Strumpf
Oil prices fell on Friday, extending their recent declines amid a stubborn crude glut and lowered expectations for a production cut by the Organization of the Petroleum Exporting Countries.
Brent crude, the global oil benchmark fell 0.37% to $45.67 a barrel on London's ICE Futures exchange. On the New York Mercantile Exchange, West Texas Intermediate futures were trading up 0.76% at $44.33 a barrel.
On Thursday the International Energy Agency reported that OPEC produced a record 33.83 million barrels a day in October.
"We are still in the situation where we have plenty of oil and there are concerns about whether OPEC will actually be trimming production," said Bjarne Schieldrop, chief commodities analyst at SEB Markets.
OPEC is headed for a meeting Nov. 30, where members are set to approve a plan to cap production between 32.5 million and 33 million barrels a day. Prices have fallen in recent weeks on expectations that the cut will be difficult to pull off.
The oil cartel's task of tightening the oil spigot is made more difficult by external producers, such as Brazil, Canada, Kazakhstan and Russia, which are also ramping up their output.
Analysts estimate Russia's oil output went up by 0.42 million barrels a day in October on a year-on-year basis, but the country has signaled a willingness to cooperate on a supply action.
Russian Energy Minister Alexander Novak said on Thursday that Moscow could freeze crude production at November levels and said the country still prefers a freeze to production cuts, according to state news agencies.
The country has failed to follow through on similar deals in the past.
Meanwhile, the election of Donald Trump as the next American president has added additional uncertainty into the oil market. Mr. Trump has pledged to loosen restrictions on U.S. oil production, which could boost output further, send prices lower and complicate OPEC's role in the oil market.
"It is thought Trump...will push to make the U.S. more self-reliant via shale fields, so negative on the outlook for oil prices if the U.S. ramps up production," said Stuart Ive, private client manager at OM Financial. "This thought could also question OPEC's resolve to cap production levels."
Earlier this week, the U.S. Energy Information Administration raised its forecast for U.S. crude output, saying production would fall slower than expected due in part to more drilling in Texas.
Later on Thursday, investors will be tuning in foroil services firm Baker Hughes' weekly rig count report. The rig count is used as a bellwether for activity in the U.S. oil industry.
Nymex reformulated gasoline blendstock--the benchmark gasoline contract--fell 0.14% to $2.81 a gallon. ICE gas oil changed hands at $418.50 a metric ton, down $1.25 from the previous settlement.
contributed to this article.
Write to Neanda Salvaterra at firstname.lastname@example.org and Dan Strumpf at email@example.com
(END) Dow Jones Newswires
November 11, 2016 06:02 ET (11:02 GMT)
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