On May 25, OPEC member countries and non-OPEC parties, Azerbaijan, Kingdom of Bahrain, Brunei Darussalam, Kazakhstan, Malaysia, Mexico, Sultanate of Oman, the Russian Federation, Republic of Sudan, and the Republic of South Sudan agreed to extend the production adjustments for a further period of nine months, with effect from July 1, 2017. Traders will be watching figures on last week's USA stockpiles to be released later on Tuesday by industry group the American Petroleum Institute.
After rising for three consecutive days, Brent futures were down $1.81, or 3.7 percent, at $46.91 by 12:44 p.m. EDT (1644 GMT).
Oil prices decreased on June 14 after data showed a build in usa crude stocks and OPEC reported a rise in its production despite its pledge to decrease output.
Some traders still hope that Wednesday's readings from the US government will show declining inventories for oil and gasoline, as numbers from the Energy Information Administration don't always match those from the API.
The price falls came as an ongoing supply glut has pulled down crude prices by more than 10% since late May despite a move led Opec to cut production by nearly 1.8-million barrels a day until the end of the first quarter of 2018.
Those efforts thus far have largely not succeeded.
It did not provide a forecast for Opec output next year, but calculated that it rose to 32.08 million bpd in May, taking the overall global supply to 96.69 million bpd last month.
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Nevertheless, increased output in the U.S. was getting in the way of the rebalancing process, OPEC complained.
The measures helped stabilise oil prices at the beginning of the year, with the global benchmark Brent crude sticking above $50 per barrel.
"Should OPEC solve the problem of the overhang this year, it is just going to come back next year, so in any case their options are quite limited", said Mr. Weinberg.
"Indeed, based on our current outlook for 2017 and 2018, incorporating the scenario that OPEC countries continue tocomply with their output agreement, stocks might not fall to thedesired level until close to the expiry of the agreement inMarch 2018", the IEA said.
Adding to the glut is an ongoing rise in United States production driven by shale drillers, which has pushed U.S. output up by 10 per cent over the previous year to 9.3 million bpd, not far off top exporter Saudi Arabia.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $45.96 per barrel, down 50 cents, or 1.1 percent.
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