Oil gets cheaper due to fear of oversupply and dollar appreciation
Futures on Brent fell 0.86% to US$40.45 per barrel by 22:41 SGT, while those on WTI fell 0.81% to US$37.88 per barrel.
OPEC, Russia and other oil producing countries known as OPEC+ reached an agreement on Saturday to extend record production cuts of 9.7 million barrels per day until the end of July.
At the same time, Saudi Arabia later announced that it, as well as Kuwait and the UAE, would not extend the voluntary additional production cuts of 1.18 million barrels per day for July.
There are also some concerns that non-OPEC countries may increase production amid recent signs of improved demand.
Goldman Sachs has raised its 2020 Brent price forecast to US$40.40 per barrel from its previous estimate of US$35.60, while for WTI the forecast has been improved to US$36 per barrel from US$33.10 per barrel.
However, bank analysts warned that oil prices are likely to decline in the coming weeks due to uncertainty about the future trajectory of demand and "frightening" the volume of reserves