Investing.com - Crude prices fell in Asia on Monday as North Korea rattled markets with a statement its latest missile test at the weekend was capable of carrying a large nuclear warhead and investors also fretted over the potential spread of cyberattacks that have already hit 200,000 victims in at least 150 countries.
The U.S. West Texas Intermediate crude June contract fell 0.10% to $47.79 a barrel, while on the ICE Futures Exchange in London, Brent oil for July delivery was last quoted at $50.86.
Ahead the market is looking to the latest market overview from the International Energy agency for the month of April.
Last week, oil futures settled nearly flat on Friday, but still registered the first weekly gain in a month on the likelihood that key crude producers will extend output cuts beyond an agreed-on June deadline when they meet later this month.
OPEC and non-member oil producers are considering extending a global supply cut past the end of the year to give the market more time to rebalance, according to OPEC and industry sources.
Some officials in recent days have also suggested the possibility of deeper production cuts 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 futures posted their largest one-day gain since December 1 on Wednesday, rallying more than 3% after the U.S. Energy Information Administration said domestic oil stockpiles fell 5.2 million barrels in the week ended May 5, far exceeding market expectations. The reading marks the biggest weekly drawdown since December.
Crude sank to a five-month low at the start of the week, rattled by concern over increasing U.S. crude output that has shaken investors' faith in the ability of OPEC to rebalance the market.
Data from energy services company Baker Hughes showed on Friday that U.S. drillers last week added rigs for the 17th week in a row, implying that further gains in domestic production are ahead.
The U.S. rig count rose by 9 to 712, extending an 11-month drilling recovery to the highest level since August 2015.