Benchmark Brent crude futures were down four USA cents at $55,32 at 6.49am GMT.
Looking at the latest price reactions, one might conclude that the only reason for the previous price rise was the expectation of further production cuts on the part of OPEC", Commerzbank (Xetra: "CBK100 - news) strategist Carsten Fritch said. Opec exempted Nigeria and Libya a year ago from cutting production, due to their internal conflicts, while it agreed to let Iran pump an additional 90,000 barrels a day to reach output of about 3.8 million.
Oil was trading lower Wednesday morning, down 9 cents to $52.32 at about 9:50 a.m.in NY.
Libya, Nigeria have been exempted from the deal as their production is affected due to internal conflicts and Iran has been allowed to increase production to pre sanction levels of about four million barrels a day.
U.S. West Texas Intermediate (WTI) crude futures were also down 9 cents at $52.56 a barrel.
Traders said that the gains followed comments by OPEC-members Saudi Arabia and Kuwait that an effort by the Organization of the Petroleum Exporting Countries (OPEC) and other producers, including Russian Federation, to cut output by nearly 1.8 million barrels per day (bpd) during the first half of the year would be extended beyond June.
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Refineries processed 16.9 MMbopd, up 241,000 bbl from the prior week and the highest since the record 17.1 million was touched in January. They settled 53c lower at $52,65 a barrel.
A preliminary Reuters poll showed analysts expected data to show USA crude oil stocks fell in the week to April 14, building on a surprise decline the previous week.
Oil producers are showing "very good" compliance with pledged production cuts, Saudi Arabia's Energy Minister Khalid Al-Falih said Monday in Riyadh.
But U.S. stockpiles-and shale production-have cast doubt on whether the production cuts were enough. Stockpiles climbed to 535.5 million barrels at the end of March, the highest in weekly data compiled by Bloomberg since 1982.
TheNewsGuru.com reports that on December 10, 2016, OPEC won the backing of countries outside the oil cartel to join supply cuts for the first time since 2001, overcoming the final major obstacle for a global agreement to curb output.