Brent crude futures, the international benchmark for oil prices, were at $ 74.21 per barrel at 0343 GMT, down 1.8 per cent from their last close.
US West Texas Intermediate (WTI) crude futures were at $ 68.40 a barrel, down 0.3 per cent, supported more than Brent by a slight drop in US drilling activity.
Prices initially jumped after the deal was announced late last week as it was not seen boosting supply by as much as some had expected.
Opec and non-Opec partners including RUS sia have since 2017 cut output by 1.8 million barrels per day (bpd) to tighten the market and prop up prices.
Largely becaUS e of unplanned disruptions in places like Venezuela and Angola, the group’s output has been below the targeted cuts, which it now says will be reversed by supply rises especially from Opec leader Saudi Arabia. Although analysts warn there is little space capacity for large-scale output increases.
“Several ministers suggested that (rises) would correspond to a 0.7 million bpd increase in production,” said US bank Goldman Sachs following the announcement of the agreement, although it added that were risks “that Iran production may be even lower than we assume” and that its output could fall further due to looming US sanctions.
Still, Britain’s Barclays bank said Opec ‘s and RUS sia’s commitments would take “the market from a -0.2 million bpd deficit in H2 2018 to a 0.2 million bpd surplUS “.
Energy consultancy Wood Mackenzie said the agreement “represents a compromise between responding to consumer pressure and the need for oil-producing countries to maintain oil prices and prevent harming their economies”.
In the United States, US energy companies last week cut one oil rig, the first reduction in 12 weeks, taking the total rig count to 862, Baker Hughes said on Friday.
That put the rig count on track for its smallest monthly gain since declining by two rigs in March with jUS t three rigs added so far in June, although the overall level remains jUS t one rig short of the March 2015 high from the previoUS week. (Reporting by Henning Gloystein Editing by Joseph Radford)