Oil edged lower after closing at a four-month high as the OPEC+ alliance confirmed it would start tapering output cuts from next month.

Futures in New York dipped below $41 a barrel after jumping 2.3% on Wednesday. Saudi Arabia and Russia said the producer bloc would proceed with its plan to add more supply next month and were confident that it wouldn’t hurt oil’s rally. The tapering will be partially offset by reduced production from some countries that didn’t meet their targets in previous months.

West Texas Intermediate for August delivery declined 0.7% to $40.91 a barrel on the New York Mercantile Exchange as of 11:03 a.m. in Singapore. Brent for September settlement fell 0.6% to $43.55 on the ICE Futures Europe exchange after closing up 2.1% on Wednesday.

Source: Bloomberg