Crude futures are still caught between larger-than-expected growth in U.S. crude inventories and reports that the Organization of the Petroleum Exporting Countries (OPEC) could consider extending its output reductions beyond the agreed six-month period.

onflicting price drivers of OPEC's cuts and rising U.S. inventories are still preventing oil prices from reaching steadiness and stability. U.S. inventories remain bloated and supplies high dragging the prices down, while efforts of OPEC in tandem with other major producers prevent the market from slumping further.

Although members of the Organization of the Petroleum Exporting Countries and other major producers are sticking to their agreement to curb oil output, prices for crude continue to lose ground due to signs of further growth in U.S. output.

The U.S. Energy Information Administration has forecasted a jump in global petroleum and other liquids supply in the coming years.

For leading U.S. shale oil producers, $50 is the time to return to the market.

Optimism over successful implementation of an output reduction deal is still a major catalyst for the world oil market, which strives for rebalancing.

Oil prices increased on January 12, supported by expectations of a strong demand growth in China and signs that OPEC members are starting to cut output.

World oil prices plummeted on January 5 as the traders started to doubt ability of major producers to fully follow their output reduction pledges.

U.S. crude fell nearly 4 percent on Friday, dragged down by uncertainty over whether the Organization of the Petroleum Exporting Countries will reach an output deal, after Saudi Arabia said it will not attend talks on Monday with non-OPEC producers to discuss supply cuts, Reuters reported.

With volatility high in the world energy market, OPEC members are still seeking to settle their differences on a deal to cut output ahead of an anticipated meeting later this month.