Oil is cheaper due to OPEC production

Oil is cheaper due to OPEC production growth, despite the agreement on the limitation of

Oil prices retreated from a level of $ 50 a barrel on Monday, despite the fact that the exporters last week agreed to restrict production, as traders are skeptical that this step is enough to eliminate the glut in the market.

By 8.57 GMT, futures for Brent crude traded at $ 49.97 a barrel, up 0.44 percent from the previous close.

Futures for US WTI crude fell by 0.64 percent to $ 47.93 per barrel.

Falling prices followed a reported increase in OPEC production since rival members of the organization, such as Saudi Arabia, Iran and Iraq, does not want to give up market share.

OPEC oil production is likely to reach 33.60 million barrels per day in September from a revised 33.53 million bpd in August, showed a Reuters survey on Friday.

"The mood is a little bit worse in connection with an investigation by Reuters on Friday, which showed that, despite the agreement on the reduction of production, OPEC produced oil in record numbers during September"- said a senior market analyst at OANDA Dzheffri Holli.

Oil prices dropped, although members of OPEC last week agreed to cut production in the range of 32.5 million barrels per day to 33.0 million from about 33.5 million barrels per day, with the details of the contract are to be agreed at a meeting of the organization in November.

Traders said if the planned production constraint will not be able to balance supply and demand, the downside risks to oil prices will be higher than expected.

Trading activity on Monday will be reduced due to public holidays in China and Germany, the largest market in Asia and Europe.

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