Investing.com - Oil prices reversed gains in North American trade on Thursday, falling to the lowest levels of the session after a key meeting of major oil producers in Vienna ended without an agreement to limit production.
According to a delegate, the Organization of the Petroleum Exporting Countries failed to reach a new oil supply agreement.
On the ICE Futures Exchange in London, Brent oil for August delivery slumped to an intraday low of $49.24 a barrel after briefly rising to $50.30 earlier in the session.
It last stood at $49.40 by 12:55GMT, or 8:51AM ET, down 32 cents, or 0.64%.
Brent prices hit an eight-month peak of $50.96 last week as unplanned supply disruptions in Nigeria eased concerns over a global glut. Brent futures prices are up by roughly 85% since briefly dropping below $30 a barrel in mid-February.
Elsewhere, crude oil for July delivery on the New York Mercantile Exchange shed 46 cents, or 0.94%, to trade at $48.55 a barrel after rising to a daily peak of $49.47.
The U.S. Energy Information Administration will release its weekly report on oil supplies at 15:00GMT, or 11:00AM ET, amid expectations for a drop of 2.5 million barrels.
Gasoline stockpiles are expected to fall by 0.2 million barrels while stocks of distillates, which include heating oil and diesel, are also expected to drop by 0.9 million barrels, according to analysts.
After markets closed Wednesday, the American Petroleum Institute, an industry group, said that U.S. oil inventories rose by 2.35 million barrels in the week ended May 27, compared to expectations for a decline of 3.1 million barrels.
Crude stocks at the Cushing, Oklahoma, delivery hub for WTI dropped by 1.03 million barrels, the API said, while gasoline inventories declined by 1.48 million barrels and distillate inventories fell by 1.15 million barrels.
The reports come out one day later than usual due to the Memorial Day holiday in the U.S. on Monday.
Nymex prices rallied to $50.21 last week, the most since October 9. U.S. crude futures are up nearly 80% since falling to 13-year lows at $26.05 on February 11 as a decline in U.S. shale production boosted sentiment.
Meanwhile, Brent's premium to the WTI crude contract stood at 85 cents a barrel, compared to a gap of 71 cents by close of trade on Wednesday.