By Florence Tan
SINGAPORE, Feb 10 (Reuters) - Oil prices on Monday extended
their decline from an early January peak above $70 as the
spectre of excess supplies loomed over the market after the
spreading coronavirus outbreak hit demand in China, the world's
largest oil importer.
Brent crude LCOc1 hit a low of $53.63 a barrel and was at
$54.09 by 0100 GMT, down 38 cents. U.S. West Texas Intermediate
fell 38 cents to $49.94 a barrel after striking a low of $49.56.
Worries over supply were not alleviated on Friday when
Russia said it need more time to decide on a recommendation from
a technical committee that has advised the Organization of the
Petroleum Exporting Countries (OPEC) and its allies to cut
production by a further 600,000 barrels per day.
Russia Energy Minister Alexander Novak said Moscow needed
more time to assess the situation, adding that U.S. crude
production growth would slow and global demand was still solid.
The proposal for the further cuts "failed to alleviate the
pressure on oil, in part because the proposal has yet to be
formally discussed by OPEC ministers and because Russia
continues to push back against further cuts," said Stephen
Innes, chief market strategist at AxiCorp.
"If the cartel fails to reach an agreement, there will be
more pain to come in oil (on the) downside."
Oil traders also said they are concerned the proposed
reduction would not be sufficient to tighten global markets.