Investing.com - U.S. oil prices slipped lower on Friday, as investors locked in profits from the commodity’s recent gains sparked by hopes major oil producers will extend their plan to reduce output levels in a move to re-balance the market.
U.S. crude futures for June delivery were down 0.17% at $47.74 a barrel, after hitting a seven-day high of $48.22 on Thursday.
On the ICE Futures Exchange in London, the July Brent contract slipped 0.10% to $50.72 a barrel, also off the previous session’s seven-day peak of $51.16 a barrel.
Crude prices strengthened after Iraqi petroleum minister Ali al-Luiabi said this week that there is an emerging consensus among members and non-members of the Organization of the Petroleum Exporting Countries to extend an output cut agreement for six more months to help clear a supply glut.
In November last year, OPEC and other producers, including Russia agreed to cut output by about 1.8 million barrels per day between January and June, but so far the move has had little impact on inventory levels.
A final decision on whether or not to extend the deal beyond June will be taken by the oil cartel on May 25.
Oil prices were also boosted after the U.S. Energy Information Administration on Wednesday said crude oil inventories fell by 5.2 million barrels in the week ended May 5, far exceeding market expectations. The reading marks the biggest weekly drawdown since December.
The EIA also said that gasoline stockpiles declined by 200,000 barrels, while distillate stockpiles were down 1.6 million barrels last week.