Investing.com - Crude oil prices fell in Asia on Monday as investors noted more drilling activity in the U.S. and other downbeat supply signals from top producers.
On the New York Mercantile Exchange, crude oil for delivery in November fell 0.40% to $50.15 a barrel.
Last week, oil futures slipped on Friday, but still scored their fourth weekly gain in a row as market players awaited details of a planned output cut by the Organization of the Petroleum Exporting Countries.
On the ICE Futures Exchange in London, Brent oil for December delivery slipped 8 cents, or 0.15%, on Friday to settle at $51.95 a barrel by close of trade. For the week, it scored a gain of 2 cents, or 0.04%, after posting advances in each of the last three weeks.
The Organization of the Petroleum Exporting Countries reached an agreement to limit production to a range of 32.5 million to 33.0 million barrels per day in talks held on the sidelines of an energy conference in Algeria late last month.
However, market analysts remained skeptical of the deal, pondering how such a plan would be implemented.
The 14-member oil group said it won’t finalize details or complete its production agreement until the group’s next official meeting in Vienna on November 30.
Brent gave back some gains after OPEC's monthly report published Wednesday revealed that its oil production rose in September to the highest level in eight years. The producer cartel pumped 33.39 million barrels per day last month, up 220,000 barrels per day from August.
Market players continued to focus on U.S. drilling prospects, amid indications of an ongoing recovery in drilling activity. Oilfield services provider Baker Hughes said late Friday that the number of rigs drilling for oil in the U.S. last week rose by 4 to 432, marking the 15th increase in 16 weeks.
Some analysts have warned that the recent rally in prices could be self-defeating, as it encourages U.S. shale producers to drill more, underlining concerns over a global supply glut.
Weekly government data showing sizable drawdowns in domestic gasoline and distillate stockpiles, which include heating oil, provided support, although inventories of crude oil rose for the first time in six weeks, according to the U.S. Energy Information Administration.