Oil market drifts lower on deal doubts

World oil prices nudged lower today as doubts grew over a Russian-Saudi pledge to address a chronic global supply glut.
At 1600 GMT, US benchmark West Texas Intermediate for October delivery declined seven cents to USD 44.37 per barrel.
Brent North Sea crude for November fell 73 cents to USD 46.90 a barrel compared with the previous day's closing level.
Prices had briefly surged yesterday on news that Saudi Energy Minister Khaled Al-Falih and Russian counterpart Alexander Novak were to make an announcement after meeting at the G20.
However, the bumper gains were all but wiped out after the statement underwhelmed the market and provided scant detail about their plans.

Falih added however that there was "currently no need" to freeze production.

"The optimism generated by yesterday's deal between Russia and Saudi Arabia seems to have petered out," noted analyst Wayne Heap at British-based brokerage Love Energy.
Falih and Novak agreed to act together to steady the market but stopped short of an output freeze.
"Oil prices continued to slide on Tuesday after the temporary spike on Monday proved unjustified by the limited agreement to cooperate between Russian and Saudi oil ministries," said CMC Markets analyst Jasper Lawler.
"It would appear the price spike on Monday was used as an opportunity for those who believe there will be no agreement on freezing output at this month's unofficial OPEC meeting to sell oil futures."

The two ministers said yesterday that they will act "together or in cooperation with other oil producers" and agreed to set up a "joint monitoring group" to offer recommendations to prevent price fluctuations.
The Organization of the Petroleum Exporting Countries (OPEC), the 14-nation cartel which produces about one third of the world's oil, will meet informally with Russia later this month in Algeria to discuss a possible output freeze in order to boost prices.
The previous attempt at reaching a deal in April was scuppered by OPEC member Iran's refusal to agree to any production freeze, and there are worries about the chances of a deal in Algiers.

Separately today, Iran's oil minister Bijan Zanganeh said the Islamic republic "supports any decision to return stability to oil markets", in comments cited by the Shana news agency.
He added: "The desired price for most OPEC members for oil is between 50 and 60 dollars".