Oil retreated from a three-month high as OPEC+ unity was threatened by a long-running feud over complying with production cutbacks, while U.S. data cast doubt on the strength of the demand recovery.

Futures in New York fell around 1% to near $37 a barrel after closing at the highest since March 6. Saudi Arabia and Russia have reached a preliminary dealto extend output curbs for an extra month, but it’s conditional on other members making deeper cuts in the months ahead to make up for past non-compliance, people familiar with the matter said. The two leading producers have lost their patience with the errant behavior of the next-biggest, Iraq.

West Texas Intermediate for July delivery dropped 1.3% to $36.79 a barrel on the New York Mercantile Exchange as of 8:17 a.m. in Singapore after rising 1.3% on Wednesday. Brent for August settlement declined 0.8% to $39.47 on the ICE Futures Europe exchange after trading above $40 for the first time in almost three months in the previous session.

Source : Bloomberg