Crude oil halts gain as Opec cuts yet to be verified

Futures slip 1.2% in New York and headed for a weekly drop of 3%

Oil headed for its first weekly decline since December as traders waited for proof that Opec and other producers would follow through on promises to cut production.

Futures slipped 1.2 per cent in New York and were headed for a weekly drop of 3 per cent. Saudi Arabia reduced output to less than 10 million barrels a day and will consider renewing its pledge to trim supply in six months, according to Energy Minister Khalid Al Falih. Still, until monthly production data is released, “these claims cannot be verified,” according to Commerzbank AG.

Oil has advanced since the deal among member of the Organisation of Petroleum Exporting Countries and 11 other nations to temper global supply. It has been unable to sustain its rally above $55 (Dh201) amid concern that rising prices will spur more production. While Middle East producers including Saudi Arabia have signalled they’re sticking to the pledged reductions, the US recently raised this year’s output forecast and explorers have added drilling rigs for 10 straight weeks.

West Texas Intermediate for February delivery fell 53 cents to $52.48 a barrel on the New York Mercantile Exchange at 11.30am in London. Total volume traded was about 11 per cent below the 100-day average. The contract gained 76 cents to $53.01 on Thursday.

Brent for March settlement slid 51 cents to $55.50 a barrel on the London-based ICE Futures Europe exchange. The contract added 91 cents, or 1.7 per cent, to $56.01 on Thursday.