* Saudis cutting back output but other OPEC members keep
* Soaring U.S. production further undermines OPEC's cuts
* IEA expects glut to last despite demand hitting 100 mln
By Henning Gloystein
SINGAPORE, June 15 Oil prices wallowed near
their lowest levels in seven months early on Thursday, hurt by
high global inventories and doubts over OPEC's ability to
implement production cuts.
Brent crude futures were down 7 cents or 0.2 percent
at $46.93 per barrel at 0053 GMT, after slumping nearly 4
percent in the previous session.
U.S. West Texas Intermediate (WTI) crude futures were
down 12 cents or 0.3 percent at at $44.61 per barrel.
Crude futures benchmarks are sitting near their lowest
levels since late November last year when production cuts led by
the Petroleum Exporting Countries (OPEC) were first announced.
Brent and WTI are down over 12 percent since their opens on
May 25, when the agreement to cut was extended to the end of the
first quarter next year, instead of expiring this month as
"OPEC 2017 year-to-date exports are only down by 0.3 million
barrels per day (bpd) from the October 2016 baseline," analysts
at AB Bernstein said in a note to clients.
OPEC's pledge was to cut some 1.2 million bpd, while other
producers including Russia would bring the total reduction to
almost 1.8 million bpd.
However, some OPEC members including Nigeria and Libya have
been exempt from cutting, and their rising output undermines
efforts led by Saudi Arabia.
Meanwhile, production in the United States - which is not
participating in the deal - has jumped by more than 10 percent
over the past year to 9.33 million bpd. C-OUT-T-EIA
"Production growth in Libya and Nigeria and continued rig
additions in U.S. are complicating the picture, raising doubts
on OPEC's strategy. For OECD inventories to return to the
normalized levels, OPEC needs to drain by 34 million barrels a
month or 1 million barrels for the next 10 months. This looks
challenging," AB Bernstein said.
The International Energy Agency (IEA) said this week that
oil supplies next year would still outpace demand despite
consumption hitting 100 million bpd for the first time.
(Reporting by Henning Gloystein; Editing by Richard Pullin)