Crude futures inched down on Monday, after a small recovery lost momentum on investor concerns that a deal by major oil producers to curtail global supply may not fully reduce global stocks.
Brent crude, the global oil benchmark, fell 0.77% to $45.20 a barrel on London's ICE Futures exchange. On the New York Mercantile Exchange, West Texas Intermediate futures were trading down 0.49% at $42.80 a barrel.
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"The original recovery wasn't all that convincing. It just ran out of steam," said Bjarne Schieldrop, chief commodities analyst at SEB Markets.
Overall analysts are still expecting global stocks to decrease in the third quarter as refineries come back online and start consuming the crude. But the stock declines "won't be as substantial as expected since Libya and Nigeria have recovered," said Mr. Schieldrop.
The Organization of the Petroleum Exporting Countries and a handful of nations outside the cartel have cut global supply by about 2%. But since the beginning of the year, investors have grown concerned that rising output in OPEC countries exempt from the deal such as Libya and Nigeria, and outside producers including the U.S., has undercut the oil cartel's efforts.
The latest data from oil-services firm Baker Hughes Inc. showed U.S. shale producers added 11 more rigs, marking the 23rd weekly rise and the longest streak of increases in decades.
"Adherence to quotas has thus far been impressive but the impact of such has been offset by virtually uninterrupted gains in shale production and increases within other non-OPEC regions that have helped to slow our expected contraction in the U.S. crude supply surplus against the averages," Jim Ritterbusch, president of Ritterbusch & Associates, wrote in a research note.
Nymex reformulated gasoline blendstock -- the benchmark gasoline contract -- fell 1.03% to $1.41 a gallon. ICE gasoil changed hands at $406.50 a metric ton, down $4.75 from the previous settlement.
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(END) Dow Jones Newswires
June 26, 2017 11:26 ET (15:26 GMT)