Investing.com - Oil prices were lower during European hours on Monday, moving away from the highest level in four months as traders eyed comments from crude producers at this week’s World Energy Conference in Istanbul.
Brent oil for December delivery on the ICE Futures Exchange in London shed 19 cents, or 0.37%, to $51.74 a barrel by 4:15AM ET (08:15GMT).
The contract fell by as much as 1.2% earlier to a session low of $51.30, after comments made by Russia's energy minister cast doubt over a deal to cut output to rein in global oversupply at a meeting in Turkey this week.
Furthermore, reports that Iraq and Iran will not attend this week's conference in Turkey have also highlighted problems with the proposed production cuts.
Energy ministers who will be present in Istanbul as it hosts the congress include those of the United Arab Emirates, Algeria, Venezuela and Qatar, which holds the OPEC presidency.
The meeting in Istanbul is expected to be more bilateral gatherings rather than one single meeting of both OPEC and non-OPEC states, one OPEC source said on Sunday.
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, a reduction of 0.7%-to-2.2% from its current output of 33.2 million barrels.
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.
London-traded Brent futures rallied to $52.84 last week, the most since June 9. The contract surged $1.74, or 3.35%, last week, the third straight weekly gain.
Elsewhere, crude oil for November delivery on the New York Mercantile Exchange dipped 25 cents, or 0.5%, to $49.56 a barrel after declining as much as 1.3% earlier to $49.15.
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 3 to 428, marking the 14th increase in 15 weeks.
Some analysts have warned that the current rally in prices could be self-defeating, as it encourages U.S. shale producers to drill more, underlining concerns over a global supply glut.
New York-traded oil touched a four-month peak of $50.74 in the prior session. The benchmark rose $1.57, or 3.15%, last week, after posting gains in each of the past two weeks.
There will be no floor trading on the Nymex on Monday because of the Columbus Day holiday in the U.S. All electronic transactions will be booked with Tuesday's trades for settlement.