Investing.com – Oil retreated Friday as investors weighed up the import of OPEC’s agreement to cut output.
U.S. crude was down 52 cents, or 1.09%, at $47.31 at 07:00 ET, while Brent crude fell 1.22% to $49.20.
Doubts are emerging as to the extent to which the cut in output to 32.5-33 million barrels per day agreed by OPEC in Algiers this week can be effectively implemented.
There are also doubts about how much of a dent the proposed cut of some 700,000 barrels can make on the global glut.
There are also concerns that the strong gains in oil sparked by news of the accord could lead to an increase in U.S. shale output.
Baker Hughes U.S. rig count data are due out later in the session.
The dollar index was up 0.36% as the euro fell on concerns about banks sparked by Deutsche Bank (DE:DBKGn)'s troubles.
A stronger dollar depresses demand for oil.