* Brent crude slips away from $50 per barrel
* OPEC production likely to hit new high in September
* Doubt that planned OPEC cut is deep enough to balance
By Henning Gloystein
SINGAPORE, Oct 3 Oil prices fell away from $50
per barrel on Monday despite last week's agreement by exporters
to cut output, with traders doubting the step was big enough to
rein in production that has exceeded consumption for the better
part of three years.
Brent crude futures were trading down 35 cents, or
0.7 percent, at $49.84 per barrel at 0053 GMT.
U.S. West Texas Intermediate (WTI) futures were down
40 cents, or 0.83 percent, at $47.84 a barrel.
Oil trading activity will be limited on Monday as public
holidays in China and Germany mean Asia's and Europe's biggest
markets are shut.
The price falls came despite last week's agreement by
members of the Organization of the Petroleum Exporting Countries
(OPEC) to cut output to between 32.5 million barrels per day
(bpd) and 33.0 million bpd from about 33.5 million bpd, with
details to be finalised at OPEC's policy meeting in November.
Traders said prices went lower despite the announced cuts as
overproduction remained in place for the time being, and because
the planned intervention might not be sufficient to bring
production back to, or below, consumption.
"OPEC has created its own Q4 risk to oil prices ... In
raising expectations of a November deal to cut production, it
also risks a steep price decline should it fail to achieve its
goal of cutting output back to less than 33 million bpd,"
Barclays said in a note to clients.
The market scepticism stems from the fact that OPEC
production has so far chased new records for much of this year
as rivalling members like Saudi Arabia, Iran and Iraq are
reluctant to give away market share.
As a result, OPEC's oil output is likely to reach 33.60
million bpd in September from a revised 33.53 million bpd in
August, its highest in recent history, a Reuters survey found on
Despite that, the British bank said that it did not expect a
repeat of the price crash seen late last year after a rally
earlier in 2015.
"We think oil prices, and commodities more generally, will
avoid the Q4 price crash that has become a feature of the market
in recent years," it said, pointing to an improving Asian
economic growth outlook, falling oil supplies and rising
investor interest in oil markets as main support factors for
(Reporting by Henning Gloystein; Editing by Joseph Radford)