Oil prices sank on Monday despite major crude producers' agreement to extend their current output cuts.
The West Texas Intermediate (WTI) for July delivery fell 1.36 U.S. dollars to settle at 38.19 dollars a barrel on the New York Mercantile Exchange, while Brent crude for August delivery lost 1.5 dollars to close at 40.8 dollars a barrel on the London ICE Futures Exchange.
The market movements followed a solid week for crude futures that saw prices for the front-month WTI and Brent gain 11.4 percent and 11.8 percent, respectively.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies led by Russia, known as OPEC+, agreed on Saturday to extend the historic 9.7 million barrels per day production cut till the end of July 2020.
The move, however, failed to quell oversupply concerns as overall compliance to the production-cut deal has been a consistent worry, experts noted.
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