Oil prices slipped by almost 1% in the previous session extending last week’s decline due to the lack of confirmation that OPEC will output cuts until the end of 2017 and as Russia indicated that is can lift output if the deal on curbs lapses.
Russian oil output could rise to its highest rate in 30 years if the organization of the Petroleum Exporting Countries and non-OPEC producers decides to not extend a six-month supply reduction deal beyond June 30, this was according to comments by Russian officials and details of investment plans released by the oil companies.
In just last week, oil prices have fallen about 7 percent because of the signs that there is a rising U.S. shale production offset efforts by OPEC and other producers to cut out by almost 1.8 million barrels per day (bpd) in the first half of the year.
Brent crude futures ended the session by 35 cents lower at $51.60 per barrel after reaching a session high of $52.57 per barrel. U.S. West Texas Intermediate (WTI) crude oil dropped 39 cents to settle at $49.23 per barrel after reaching a high of $50.22 per barrel a day.
David Thompson, the executive vice president at the Powerhouse which is an energy specialized commodities broker stated that "From a technical perspective, the June WTI contract has now broken another key Fibonacci level, specifically the 61.8 percent retracement of the rally from March 22 to April 12,"