Oil prices slip amid uncertainty over OPEC deal extension

A technical joint committee of OPEC and non-OPEC delegates, including Russia has recommended prolonging the oil supply cut deal until the end of 2018 with an option to review the deal in June, Reuters reported, citing sources familiar with the matter.

Although the market was widely expecting a deal extension beyond March 2018 until the end of the year to boost oil prices and clear excess global stock, doubts have emerged in the last few days around the decision.

Brent crude futures edged lower amid the uncertainty. It was last trading 0.69 percent lower at $63.17. WTI Crude is down 0.52 percent to $57.69.

OPEC’s leading member, Saudi Arabia, is pushing to extend output cuts by nine months, while non-member Russia is uncertain.

“We believe that the outcome of this meeting is much more uncertain than usual,” Goldman Sachs said in a note. “We view risks to oil prices as skewed to the downside this week as we believe that current prices, time spreads and positioning already reflect a high probability of a nine-month extension."

The market will have to wait for the results of the meeting this week, Saudi Energy Minister Khalid Al-Falih said Tuesday.

The joint committee’s recommendation is still pending the approval from the ministers of the committee.