Both oil benchmarks fell this week as doubts emerged over the effect of the OPEC/non-OPEC production cut by nearly 1.8 million barrels per day (bpd) during the first half of the year.
US crude futures, which rolled over on Friday, were at $50.66 a barrel, down 5 cents and on course for a 4.8 per cent weekly decline, also the most since March 10.
Leading Gulf oil exporters Saudi Arabia and Kuwait gave a clear signal on Thursday that OPEC plans to extend into the second half of the year a deal with non-member producers to curb supplies of crude.
OPEC sources said an internal assessment showed that if they failed to extend the agreement, oil could slide back to $30-$40 a barrel.
Kuwait's oil minister Essam al-Marzouq said he expected the agreement to be extended.
Oil prices briefly moved higher in United States trading on Thursday, but WTI hit selling pressure around the $51.20 p/b area and quickly dipped back below the $51.00 level. The OPEC has already implemented its commitment while non-cartel countries have implemented over half of the agreed upon cuts.
US oil prices plunged the most in six weeks on Wednesday after USA government data showed supplies remain plentiful.
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Brent crude has gained about 15 percent since OPEC chose to pare output, and the benchmark grade was 54 cents higher at $53.47 a barrel at 12:34 p.m.in London.
Prices for natural gas, meanwhile, fell as the EIA reported a larger-than-expected weekly climb in USA supplies of the commodity. S. producers will increase output anew, potentially sending stockpiles higher again.
The Russian energy minister said that he was discussing further oil production cuts with Russian companies and executive bodies.
"If we settle under $50 a barrel today, it could be a risk-off type of thing" and the selling continues, said Tariq Zahir, who oversees $8 million as managing member of Tyche Capital Advisors LLC.
U.S. May crude fell 0.3% to $50.27 a barrel, its fourth straight loss, including Wednesday's 3.8% loss. While extending the cuts under existing production caps for the participating countries, with continuing exemptions for Nigeria and Libya, which is starting to appear likely, would help forge the necessary consensus, discussions on the length of the extension could prove tricky.
"It all comes down to whether OPEC can deliver inventory cuts", Bill O'Grady, chief market strategist at Confluence Investment Management in St. Louis, said by telephone.
It is, however, hard to be too aggressively bearish with OPEC members planning to meet and possibly pass an extension just next month, Mr. Zahir added.
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