Oil eases on oversupply concerns ahead of holiday

An image of a pen, a magnifying glass, a calculator and a laptop on a table Credit: Shutterstock photo

* Brent, WTI hover near lowest levels since Q3 2017

* OPEC+ to meet again if cuts not enough - UAE minister

* U.S. oil drillers add 10 rigs last week - Baker Hughes

SEOUL, Dec 24 (Reuters) - Oil prices dipped on Monday aheadof the Christmas holiday break, adding to last week's steeplosses on concerns about a global oversupply.

International benchmark Brent crude LCOc1 futures fell 27cents, or 0.5 percent, to $53.55 a barrel at 0106 GMT. Brenttouched $52.79 on Friday, its lowest since September 2017.

U.S. West Texas Intermediate (WTI) crude futures CLc1 eased 8 cents, or 0.1 percent, to $45.51 a barrel. WTI hit itslowest since July 2017 on Friday at $45.13.

Rising oil supplies and a slowing global economy have putcrude oil under pressure, with both benchmarks down more than 35percent from their recent peaks in early October.

Oil production has been at or near record highs in majorproducers the United States, Russia and Saudi Arabia.

To ease supply worries, the Organization of PetroleumExporting Countries (OPEC) and its allies including Russiaagreed earlier this month to cut oil production by 1.2 millionbarrels per day (bpd).

The cuts will take place from January.

Should they not be enough to balance the market, OPEC andits allies will hold an extraordinary meeting, the United ArabEmirate's energy minister Suhail al-Mazrouei said on Sunday.

"Oil ministers are already taking to the airwaves with a'price stability at all cost' mantra," said Stephen Innes, headof trading for Asia-Pacific at futures brokerage Oanda inSingapore.

The UAE minister "left all options on the table bysuggesting that OPEC can hold an extraordinary meeting todiscuss finding the right balance," Innes added.

Mazrouei said a joint OPEC and non-OPEC monitoring committeewould meet in Baku in late February or early March.

Adding to concerns about oversupply, the number of activeU.S. rigs for drilling oil rose by 10 in the week ended Dec. 21to 883, according to a report by General Electric Co'sGE.N Baker Hughes energy services firm.

The United States has emerged as the world's biggest crudeproducer, pumping 11.6 million bpd of crude, more than bothSaudi Arabia and Russia. (Reporting By Jane Chung; editing by Richard Pullin) ((; +82 2 3704 5667; ReutersMessaging:

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More Related Articles

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.