Oil drops below $50 as concerns emerge over OPEC reduction plan

Oil fell for a third day as doubts emerged over whether OPEC’s agreement to cut crude output would succeed in reducing supply.

Futures declined as much as 0.8 percent in New York after falling 1.2 percent Wednesday. The Organization of Petroleum Exporting Countries on Sept. 28 pledged a new output range of 32.5 million to 33 million barrels a day, but internal differences have emerged over production targets. The scale of the internal obstacles OPEC must resolve was revealed Wednesday as the group’s latest output estimates showed a half-million-barrel difference of opinion over how much two key members are pumping.

West Texas Intermediate for November delivery fell as much as 42 cents to $49.76 a barrel on the New York Mercantile Exchange and was at $49.81 at 9:58 a.m. in Sydney. Total volume traded was 65 percent below the 100-day average.