On Friday, crude prices dived, as the market looked for clues on how efficiently OPEC output cuts are working to withstand a global supply overhang.
Brent crude futures declined 0.19%, being worth $51.64 per barrel. Besides this, American West Texas Intermediate crude futures tumbled 0.06%, being worth $48.72 a barrel.
The previous week crude prices dipped steeply on worries that production drops by OPEC as well as non-OPEC members, including Russia, aren’t cutting a supply overhang as rapidly as expected in the face of increased American output.
If crude inventories remain high, the OPEC could extend its crude production cut deal, as the Saudi energy minister disclosed on Thursday.
Crude stockpiles went down by 237,000 barrels by March 10, thus beating analyst expectations for a soar of 3.7 million barrels.
The previous year OPEC along with non-OPEC members including Russia reached a landmark agreement to drop output by nearly 1.8 million barrels per day in the first half of 2017.
