Optimism about crude oil demand in the coming weeks has helped prices to recover somewhat, but the sustainability of the improvement is highly uncertain.
West Texas Intermediate crude, the USA benchmark, fell 2.6 percent to $44.32 a barrel as of 7:58 a.m.in NY on Friday.
Benchmark Brent crude LCOc1 fell 30 cents to touch at $46.58 a barrel, while USA crude CLc1 dropped 25 cents to reach at $44.15, reported Reuters.
There will be no further discussions on a recently extended Opec and non-Opec oil production cut agreement, despite signs that it is not having the desired impact, according to Opec Secretary General Mohammed Sanusi Barkindo. "However, the fact is that with Trump in charge, a lower taxation environment coupled with recently reduced costs could mean that low oil prices are the norm given sky-high United States production", said Josh Mahony, market analyst at IG.
West Texas Intermediate for August delivery rose 8 cents to US$44.48 a barrel at 9.58am on the New York Mercantile Exchange.
As investors weigh the likelihood and potential effectiveness of Libya and Nigeria capping production, Bloomberg reported that the possibility of the two countries agreeing to output caps is giving investors more hope that prices may rise.
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Opec production and exports increased in June, driven by Libya and Nigeria that are exempt from the group's output curbs, while rising US supplies and drilling activity have weighed on prices.
Opec agreed with Russian Federation and some other major exporters to cut output about 1.8-million barrels per day (bpd) until March 2018.
OPEC has invited Libya and Nigeria to attend a technical meeting this month.
"They're not a member of OPEC, and they're not about to control production in an effort to keep prices up".
The prices for crude oil are about 18% below in their 2017 opening levels despite a deal led by the OPEC to slash production from January.
Deeper cuts are now not on the agenda, according to Opec Secretary-General Mohammad Barkindo. Producers have reportedly begun to consider asking the two nations to limit their output.