NEW YORK, NETRALNEWS.COM - The problem of excess supply makes the world crude oil prices fall on Monday (3/28/2017).
This decrease is because investors are not sure whether the major manufacturers will extend production cut agreement to reduce global oil oversupply.
US Benchmark light sweet crude or West Texas Intermediate (WTI) for May’s delivery fell $0.24 to settle at $47.73 dollars a barrel on the New York Mercantile Exchange.
Meanwhile the European benchmark, Brent North Sea crude for May’s delivery slid $0.05 to close at $50.75 a barrel on London's ICE Futures Exchange, according to Xinhua news agency.
Committee of Ministers of the Organization of Petroleum Exporting Countries (OPEC) and other major producers agreed to consider the extension of the agreement on Sunday (3/26).
Analysts said investors are still hesitant about extension of the deal because no major manufacturers have expressed their stance clearly.
The rise in US oil drilling rig also weighed on prices. (*)