Oil prices rose in early trade on Monday on a growing conviction that an OPEC-led production cut initially scheduled to end in June would be extended to cover all of 2017.
However, by 11.20 a.m. BST (6.20 a.m. ET), the price rally had faded, leaving oil largely flat. A relentless increase in US drilling activity is seen as capping gains.
The early rise came after steep falls last week on the back of ongoing high supplies from countries that aren’t participating in OPEC the cuts, including the United States where output is soaring.
