Oil prices took a tumble on Wednesday after the Organization of the Petroleum Exporting Countries reported its September oil output at eight-year highs, dousing optimism over the group's pledge to bring a global crude glut under control.
Shortly before noon ET, Brent crude futures were down 62 cents, or 1.2%, to $51.79 U.S. a barrel. U.S. West Texas Intermediate (WTI) crude futures fell 75 cents, or 1.5%, to $50.04 U.S. per barrel.
Both contracts had risen more than 10% since the end of September on prospects major crude producers would freeze or cut production to stem an oversupply in the market.
But OPEC's monthly report showed an increase in its oil production in September to the highest in at least eight years and a rise in the forecast for 2017 non-OPEC supply growth.
Doubts remain as to the intentions of major suppliers such as Saudi Arabia and Iran and the effectiveness of any agreement in reining in output from record highs.
The prospect of countries from both OPEC and non-OPEC members such as Russia coordinating a production curb will support prices above the $50.00 U.S. mark, market participants have said since an initial agreement was struck at the end of last month.
Government officials from major oil producers, including Russia, are meeting in Istanbul this week to try to lay out more details of production cuts ahead of an official OPEC meeting in November.
