Futures slumped as much as 1.8 percent in NY while Brent crude in London slid below $50 a barrel.
Oil prices dropped almost 1 percent in early Asian trade on Friday, dragged down by ongoing concerns over a global glut in crude supply despite a bigger-than-expected draw in USA crude inventories.
That is because crude production in the United States, which is not participating in the cuts, has jumped by over 10 percent since mid-2016 to 9.34 million bpd, close to levels by top producers Saudi Arabia and Russian Federation.
"The market isn't able to see how OPEC exits production cuts without creating huge surpluses in 2018", said Jeff Currie, head of commodities research at Goldman Sachs in NY. "His comments certainly registered with the market".
The price of oil has fallen sharply as investors bet that President Donald Trump's decision to pull the United States out of the Paris climate agreement will increase the country's oil and gas production.
In the same period Brent rose more than 7.5%while WTI gained 10.10%.Oil analysts have grown more downbeat about the outlook for crude and expect prices to average around $55 a barrel this year even after OPEC and its partners agreed to restrain production into 2018, a Reuters poll of analysts showed on Friday.
U.S. West Texas Intermediate crude CLc1 futures dropped 45 cents, or 0.93 percent, to $47.91 per barrel.
On oil price decline, the OPEC scribe said that the cartel has no issues with people taking position, adding that the producers' group has chose to focus on the fundamentals.
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Prices fell 2.2 percent this week. The global benchmark crude traded at a premium of $2.02 to August WTI.
They quickly resumed their slide, however, which began when the Organization of the Petroleum Exporting Countries and other major producers agreed to extend ongoing production cuts by nine months on May 25.
While US stockpiles have edged lower, rising US production and drilling is sowing doubt over OPEC's efforts to trim a global glut.
The survey of 34 economists and analysts predicted Brent crude would average $55.57 per barrel in 2017, lower than last month's forecast of $57.04.
The rise in USA production has been driven by a record 20th straight rise in oil drilling for new production, with the rig count rising by 11 in the week to June 2, to 733, the most since April 2015. Russia's most powerful oil boss said output curbs by the country and OPEC probably won't succeed over the long term.
Mr. Trump said that he wanted to discuss a better deal for the USA and the administration as he had called upon the leader of Britain, France, Germany and Canada to personally explain his decision.
"The real deal is that the OPEC folks needed to take barrels off the market".
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