Oil Resumes Decline as U.S. Crude Production Expands 11th Week

Crude oil prices were moving in volatile territory in early Friday trading, shifting between modest gains and steep losses before the start of US trading.

"Based on today's data, there's a growing conviction that a six-month extension may be needed to rebalance the market, but the length of the extension is not firm yet", the Saudi official said. Production there has been stronger than expected. The weakness in commodities washed over to stocks, countering some fairly solid earnings reports and some cautious optimism about U.S. President Donald Trump's reform plans after the U.S. House of Representatives passed a healthcare overhaul.Traders also remained cautious ahead of Friday's U.S. government payrolls report, following March's underwhelming 98,000 figure.

LONDON, May 5 (Reuters) - Oil traders have finally given up on an early rebalancing of the crude market, with flat prices and calendar spreads plunging to the lowest level since OPEC's agreement was announced.

The cartel agreed to cut production in December but the price bounce from the resulting reduction in supply has waned.

Brent clawed back to $48.40 a barrel nearly two dollars better off than its overnight low, but the scars left it 6 percent lower than at the start of the week. United States crude ended the session 4.81% lower at $45.52 per barrel after falling as much as 5.29% to an intraday low of $45.29, the lowest since 29 November.

Brent crude settled at $48.38, or 4.75 percent lower, after tumbling as much as 5.17 percent during the session. Australia's Woodside Petroleum slid 3 percent. Overnight, MSCI's broadest index of Asia-Pacific shares outside Japan.MIAPJ0000PUS closed 0.62 percent lower. Wall Street was poised to open slightly higher.

Bills add picks and character in selecting LSU's Tre'Davious White
He addresses an immediate need on a team that lost starter Stephon Gilmore in free agency and released top backup Nickell Robey-Coleman.

The Canadian dollar, the Australian dollar and Russia's rouble - some of the world's most commodity- sensitive currencies - were all sent spinning, falling respectively to 14-month, four-month and seven-week lows.

Traders also remained cautious ahead of Friday's USA government payrolls report, following March's underwhelming 98,000 figure.

"With continued solid job growth, the US economic expansion will continue throughout 2017".

Commodity Trading Advisors were among those liquidating their oil contracts, traders said.

A survey conducted by the news agency found that production from the OPEC members fell for the fourth consecutive month in April.

Asian stocks declined for a third consecutive day on Friday as fresh falls in commodities raised concerns about the health of the global economy, though the euro bucked the broad weakness on receding concerns about France's presidential election.

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