Oil futures were headed lower Thursday, stumbling as questions about the willingness of global producers to maintain output reductions and compliance with an existing pact to stabilize prices comes into question.

A failure to bring forward a meeting of the Organization of the Petroleum Exporting Countries and its major allies, including Russia, a group known as OPEC+, also has unsettled the buying mood in crude markets.

Over the past 24 hours, oil-producing giants Saudi Arabia and Russia, two of the world's biggest oil producers, have agreed to extend production cuts of 9.7 million barrels per day, which are set to start tapering at the end of this month, into July. However, the Saudis and Russian's backing of an extension of output reductions are contingent on countries like Nigeria and Iraq, complying with existing measures to reduce global supplies, Reuters reported. Meanwhile, Saudi Arabia, Kuwait and the United Arab Emirates have not agreed to voluntary additional cuts of 1.18 million barrels per day after June, according to Reuters.

West Texas Intermediate crude for July delivery tacked shed 58 cents, or 1.6%, to trade at $36.72 a barrel on the New York Mercantile Exchange, more than erasing Wednesday's gain. Global benchmark Brent saw its August contract slip 29 cents, or 0.7%, to trade at $39.50 a barrel on the ICE Futures Europe, also wiping out a similar increase on Wednesday. Prices for WTI and Brent crude had marked their highest since March 6, according to Dow Jones Market Data.

Source : Marketwatch