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Oil prices surrender gains as oversupply fears weigh

Published 08/05/2017, 11:12 pm
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Investing.com - Oil prices surrendered gains on Monday as traders weighed news that an OPEC-led production cut scheduled to end in June could be extended against an ongoing upsurge in U.S. shale production.
U.S. crude was down 17 cents, or 0.37%, at $46.05 by 08.07 ET. Brent crude was down 20 cents, or 0.41% to $48.90.
Prices rose earlier after Saudi Arabia's energy minister indicated that an OPEC-brokered production cut could be extended to the end of the year, or possibly beyond.
A decision on whether to continue the production cuts is expected at OPEC's next official meeting on May 25.
The comments came after oil prices fell to almost six-month lows last week due to ample supply in countries that are not part of the output cut, including the U.S., where shale production is soaring.
Data on Friday showed that the recovery in U.S. drilling had extended for a year.
Investors were also digesting oil data from China that showed imports eased in April.

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