LONDON, Nov 26: IPE Brent crude futures extended Friday’s losses on Monday with little sign of an early Opec/non-Opec agreement on output cuts.

Traders said volumes had been very light and selling pressure had been unable to breakdown support around $18.60.

By 1242 GMT January Brent was 55 cents weaker at $18.73 a barrel with around 4,500 lots traded on the contract.

January NYMEX crude was up two cents at $18.98 a barrel.

December gas oil futures stood $3.75 a ton weaker at $164.

Analysts said the market looked to be moving into a consolidation phase that was likely to pivot around the $18.60 region, where the market has found support over the past three trading days. Key support starts around $18.36.

Tom James at Carr Futures said the early selling could be an opportunity to cover shorts, suggesting the market may see a limited recovery from above $18.

“Without anymore negative headlines we have a reasonable chance to see a recovery from here,” James said, though he added that he expected the market settle into a $17-$20 range over the next six months.

Russia said on Friday it would trim output by 50,000 barrels per day (bpd) in the fourth quarter, up from its original 30,000 bpd pledge, but postponed a decision about the crucial first quarter of next year.

“It is considered too little by all standards,” Ibrahim al-Muhanna, adviser to Saudi Arabian Oil Minister Ali al-Naimi, said in an article published on Sunday in the Saudi-owned Asharq al-Awsat newspaper.

Opec members have said they would cut output by 1.5 million bpd from January only if Russia and other non-Opec producers contributed a further 500,000 bpd curb.

The reaction from Gulf Opec members was that of disappointment although it was noted Russia could cut more for January when the government and oil companies meet again in early December.—Reuters