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Oil edges lower as supply concerns check losses

Oil payments edged lower on Monday after international benchmark Brent hit a fresh five-month high in the previous session, but cares over global supplies provided a floor to losses.

Brent crude oil futures were at $71.40 a barrel at 0015 GMT, down 15 cents, or 0.2 percent, from their abide close. Brent closed up 1 percent on Friday when prices hit a high of $71.87 a barrel, the highest since Nov. 12.

U.S. West Texas Midway (WTI) crude futures were at $63.60 per barrel, down 29 cents, or 0.5 percent, from their terminal settlement. WTI rose 0.5 percent on Friday.

The head of Libya’s National Oil Corp warned on Friday that reiterated fighting could wipe out crude production in the country.

“Supply side issues remained a concern for the market. Libyan resister leader Khalifa Haftar moved forces closer to Tripoli,” ANZ Bank said in a research note.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies assemble in June to decide whether to continue withholding supply. OPEC, Russia and other producers, an alliance known as OPEC+, are bring down output by 1.2 million bpd from Jan. 1 for six months.

OPEC’s de facto leader, Saudi Arabia, is considered acerbic to keep cutting, but sources within the group said it could raise output from July if disruptions proceed elsewhere.

Russia’s Finance Minister Anton Siluanov was quoted by the TASS news agency as saying on Saturday that Russia and OPEC may come to a decision to boost production to fight for market share with the United States but this would push oil prices as low as $40 per barrel.

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