Oil prices sink in Asia as market mulls supply outlook

On Monday, crude prices gave up early revenues in Asia after a weekend gathering that saw some pledge for the extension of a coordinated output drop by OPEC as well as non-OPEC key producers.

A joint committee of ministers from OPEC and also non-OPEC oil producers has decided to review whether a global pact to restrict supplies should be extended by six months. Crude sector experts told that the lack of an immediate extension could drag on oil prices.

US West Texas Intermediate May delivery crude futures dropped 0.19%, hitting $47.88 in New York. Besides this, in London, Brent crude May delivery futures sagged 0.04%, trading at $50.78 a barrel.

In the week ahead, market participants will eye fresh weekly information on American stockpiles of crude as well as refined products in order to assess the strength of demand in the world’s number one crude consumer.

The previous week, crude futures settled higher on Friday, though posted a weekly loss of about 2% as the market weighed ascending shale output and record-high stockpiles in America against efforts by key producers to reduce output to tame a global glut.