Oil slipped below $59 a barrel today as traders doubted Opec action on production cuts despite assurances from the cartel's president.
A lack of attacks on the oil industry in Nigeria over the weekend also eased concern over further disruption to the world's eighth-largest exporter, following a US warning last week of an imminent militant bombing campaign.
US light crude for December delivery was down 35 cents at $58.79 a barrel earlier this morning after gains of $1.26 on Friday that trimmed losses last week to 2.7 per cent. London Brent crude traded 35 cents down at $58.80 a barrel.
Opec President Edmund Daukoru said last night all Opec members will fully implement their oil production cuts, while market conditions may force the cartel to cut output further next month, indicating the group may no longer tolerate prices below $60.
Venezuela is recommending Opec take an additional 300,000 barrels per day (bpd) off the market at its December meeting, to add to a 1.2 million bpd cut agreed from November, to try to stem a 25-per cent price slide since mid-July.