Oil edges lower, supply concerns check losses

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

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

US West Texas Intermediate (WTI) crude futures were at US$63.60 per barrel, down 29 cents, or 0.5 per cent, from their last settlement. WTI rose 0.5 per cent on Friday.

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

"Supply side issues remained a concern for the market. Libyan rebel 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 meet in June to decide whether to continue withholding supply. Opec, Russia and other producers, an alliance known as Opec+, are reducing output by 1.2 million bpd from Jan 1 for six months.

Opec's de facto leader, Saudi Arabia, is considered keen to keep cutting, but sources within the group said it could raise output from July if disruptions continue elsewhere.

Russia's finance minister Anton Siluanov was quoted by the Tass news agency as saying on Saturday that Russia and Opec may decide to boost production to fight for market share with the United States but this would push oil prices as low as US$40 per barrel.

REUTERS