2017.05.2508:14:00UTC+00Crude Oil Drops Near $50 Despite OPEC Extension

Crude oil futures fell Thursday despite news that OPEC has agreed to extend production cuts for nine months.

Members of the organization will extend their deal with Russia through March, Bloomberg reports, citing two officials. A formal announcement is expected this morning.

However, analysts have doubts over whether the plan will re-balance markets. Production cuts from OPEC failed to do so over the first five months of the year.

WTI light sweet crude oil was down 85 cents at $50.53 an ounce, having risen six of the past seven sessions.

Data from the U.S. Energy Information Administration showed that domestic crude supplies fell by 4.4 million barrels for the week ended May 19, as refineries stepped up production.

That was the seventh weekly drop in a row for crude supplies, which hit record highs over the winter.