Investing.com - Crude oil futures reversed earlier gains to trade lower on Monday, following the release of the latest supply estimates from the Organization of the Petroleum Exporting Countries.
On the ICE Futures Exchange in London, Brent oil for December delivery shed 56 cents, or 1.07%, to trade at $52.35 a barrel during U.S. morning hours after rising by as much as 1.32% earlier in the session.
On Friday, Brent futures hit a seven-week high of $54.36, before settling at $52.91, down 47 cents, or 0.88%.
Elsewhere, crude oil for delivery in November on the New York Mercantile Exchange dropped 82 cents, or 1.65%, to trade at $48.81 a barrel after hitting a daily peak of $50.13.
On Friday, Nymex oil prices rallied to $50.92, a level not seen since July 21 amid indications U.S. oil drillers are cutting back on production following a collapse in prices over the summer.
In its October monthly report released earlier in the day, OPEC said oil supply from countries outside the organization is expected to fall further in the months ahead.
The oil cartel cut its U.S. oil production forecast of 280,000 barrels a day next year, leading to a decline of 60,000 barrels a day in 2016 instead of a previously predicted increase.
The news comes after industry group Baker Hughes (N:BHI) said last Friday that the number of rigs drilling for oil in the U.S. decreased by 9 last week to 605, the lowest since July 2010 and the sixth straight weekly decline.
A lower U.S. rig count is usually a bullish sign for oil as it signals potentially lower production in the future.
The oil market has been volatile in recent months amid uncertainty about how quickly the global glut of crude is set to shrink. Despite this tighter outlook for North America, output remains robust in other countries.
Saudi Arabia and other Gulf OPEC members have indicated they will continue to stick to their policy of defending market share by keeping production high.
Oil prices have lost nearly 60% since last summer as lingering concerns over a glut in world markets drove down prices.
Global oil production is outpacing demand following a boom in U.S. shale oil production and after a decision by the Organization of Petroleum Exporting Countries last year not to cut production.
Meanwhile, the spread between the Brent and the WTI crude contracts stood at $3.54 a barrel, compared to $3.28 by close of trade on Friday.