Investing.com - U.S. oil slipped lower on Friday, as investors remained cautious following reports the Organization of the Petroleum Exporting Countries could prolong its output cut plan in order to counter the effects of rising U.S. production.
U.S. crude futures for March delivery were down 0.15% at $53.28 a barrel.
On the ICE Futures Exchange in London, the April Brent contract edged down 0.18% to trade at $55.55 a barrel.
Oil prices initially strengthened after Reuters reported that OPEC’s supply reduction pact could be extended if all major producers showed "effective cooperation".
OPEC and non-OPEC countries have made a strong start to lowering their oil output under the first such pact in more than a decade as global producers look to reduce oversupply and support prices.
January 1 marked the official start of the deal agreed by OPEC and non-OPEC member countries such as Russia in November last year to reduce output by almost 1.8 million barrels per day.
If carried out as planned, the deal should reduce global supply by about 2%.
However, output cuts have recently been clouded by reports of rising production in the U.S. The U.S. Energy Department said on Wednesday that U.S. crude oil and gasoline inventories hit all-time records last week.
Separately, the U.S. Energy Information Administration predicted that U.S. shale oil production will rise by a total of 80,000 barrels a day to 4.87 million barrels a day in March – the highest rate of shale oil production since May last year.