Oil prices fall on doubts over output cuts, surging US diesel inventories

Oil prices dropped on Thursday, reversing gains in the previous session, on concern over whether major crude producers will be able to agree to extend record output cuts, heightened by worries over a huge build in US distillate inventories.

Brent crude futures fell 1.46%, or 58 cents, to $39.21 a barrel as of 0459 GMT, while US West Texas Intermediate (WTI) crude futures slid 1.98%, or 74 cents, to $36.55 a barrel.

Saudi Arabia and Russia, two of the world’s biggest oil producers, have agreed to support extending into July the 9.7 million barrels per day (bpd) in supply cuts backed in April by the OPEC+ group, comprised of the Organization of the Petroleum Exporting Countries and other major producers.