Brent Oil Falls Towards $54 on OPEC Output, Iran

Brent crude oil fell towards $54 a barrel on Friday and was on track for its third straight weekly loss, hurt by oversupply worries after Kuwait said OPEC had no choice but to maintain output levels.

Brent for May delivery had fallen 33 cents to $54.10 by 0931 GMT. The contract is set to decline by more than 1 percent this week.

U.S. crude for April delivery slipped 21 cents to $43.75 a barrel, headed for its fifth weekly loss. The contract expires on Friday.

"Oil has been under pressure following remarks by Kuwait's oil minister and the very slim chance of an approaching deal with Iran," said Eugene Weinberg, Commerzbank's head of commodities research.

"Continuously high OPEC supplies, rising U.S. production and inventories are putting pressure and the market is still looking for a floor," he said, adding he "wouldn't be surprised" if the current month contract dropped to around $50 in coming weeks.

Kuwait's oil minister said on Thursday that the Organization of the Petroleum Exporting Countries (OPEC) had no choice but to shun oil output cuts, reiterating the view from the emirate that the group will hold its course when it meets next in June.

Oil prices fell on Thursday after data pointing to the highest oil inventories in the United States in at least 80 years.

Also weighing on prices, Iraq's southern oil exports have risen in March as poor weather that delayed cargoes in February cleared, putting OPEC's second-largest producer back within sight of record shipments.

European leaders met in Brussels for further talks on Iran a day after a senior European negotiator said six world powers are unlikely to reach a framework deal with Tehran on its nuclear work in coming days as the sides remain far apart on key issues.[ID:nL2N0WL0KV

A deal with Iran could lead to the easing of sanctions restricting oil exports from the energy-rich country, potentially adding to a global supply glut.

But concerns that inventories could have reached maximum capacity in the United States and a tentative deal to end the largest U.S. refinery strike in 35 years could mean oil prices will rise, Phillip Futures analysts said in a note.