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Brent crude <LCOc1> futures were down 19 cents to $39.60 a
barrel at 1211 GMT, heading for their first fall in six
sessions. U.S. West Texas Intermediate (WTI) crude <CLc1>
futures dropped 40 cents to $36.89.
Saudi Arabia and Russia, two of the world's biggest oil
producers, have agreed to support an extension into July of the
9.7 million barrels per day (bpd) supply cuts backed in April by
the OPEC+ group, comprising the Organization of the Petroleum
Exporting Countries and other major producers.
But holding an OPEC+ meeting to discuss the cuts remains
conditional on a deepening of cuts by countries that have not
complied with their targets so far, sources said.
Saudi Arabia, Kuwait and the United Arab Emirates are not
planning to extend voluntary additional output cuts of 1.18
million bpd after June, indicating that crude supply could rise
next month regardless of any OPEC+ decision.
SEB oil market analysts said they saw a "better than even
chance" for an extension of OPEC+'s current cuts, but also
pointed to continuing weak demand keeping the Brent benchmark
below $40 a barrel.
Official U.S. data showed gasoline stocks rose by 2.8 million
barrels, nearly triple what analysts had expected. Distillate
stocks rose by 9.9 million barrels, nearly four times more than
expected.
In Asia, the volume of oil products traded during S&P Global
Platts' Market-on-Close process plunged 74% in May from a year
earlier, data analysed by Reuters showed.
Striking a bullish note, however, Russia's Energy Minister said
the oil market in July could face a shortage of 3-5 million bpd,
Interfax news agency reported.
(Additional reporting by Shu Zhang and Sonali Paul in Melbourne;
Editing by David Goodman and Mark Potter)
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