Investing.com - Crude prices held weaker in Asia on Monday with investors looking near term to a demand and supply forecast from the IEA.
On the New York Mercantile Exchange, crude oil for delivery in November fell 0.92% to $49.35 a barrel. On the ICE Futures Exchange in London, Brent oil for December delivery dropped 0.87% to $51.48 a barrel.
On Tuesday, the International Energy Agency (IEA) will release its monthly report on global oil supply and demand.
Last week, oil futures fell for the first time in three sessions on Friday, but still scored their third weekly gain in a row as market players awaited details of a planned output cut by the Organization of the Petroleum Exporting Countries.
The oil cartel reached an agreement to limit production to a range of 32.5 million to 33.0 million barrels per day, a reduction of 0.7%-to-2.2% from its current output of 33.2 million barrels.
However, market analysts remained skeptical of the deal, pondering how such a plan would be implemented.
OPEC oil producers plan an informal meeting with non-OPEC member Russia on the sidelines of the World Energy Congress in Istanbul, Turkey, which runs from October 9-13 to discuss how to implement such a deal. No decision however is expected to be taken in Istanbul, OPEC sources said.
The 14-member oil group said it won't finalize details or complete its production agreement until the group's next official meeting in Vienna on November 30.
Market players continued to focus on U.S. drilling prospects, amid indications of an ongoing recovery in drilling activity. Oilfield services provider Baker Hughes said late Friday that the number of rigs drilling for oil in the U.S. last week rose by 3 to 428, marking the 14th increase in 15 weeks.
Some analysts have warned that the current rally in prices could be self-defeating, as it encourages U.S. shale producers to drill more, underlining concerns over a global supply glut.
Data showing U.S. crude supplies fell for the fifth week in a row boosted the demand outlook in the world's largest oil consumer. According to the U.S. Energy Information Administration, crude oil inventories fell by 3.0 million barrels last week to 499.7 million, the lowest since January.
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