Oil drops on doubts over output cuts, swelling U.S. fuel inventories

Oil drops on doubts over output cuts, swelling U.S. fuel inventories

NEW YORK (Reuters) - Oil prices fell on Thursday on doubts over the ability of top crude producers to agree to extend record output cuts, heightened by worries over a build in U.S. fuel inventories.. Saudi Arabia and Russia, two of the world's biggest oil producers, want to extend cuts of 9.7 million barrels per day (bpd) that major producers agreed to in April.. Saudi Arabia, Kuwait and the United Arab Emirates are not planning to extend voluntary additional output cuts of 1.18 million bpd after June, indicating that crude supply could rise next month regardless of any OPEC+ decision.. "Any decision to forgo any extension of current cuts would easily unleash a near term selling spree while an agreement to extend cuts beyond next month would have longer term bearish implications as upward adjustments to third quarter shale production forecasts would likely be required.".