Oil continues its decline

Global benchmark Brent crude slipped toward $78 a barrel following a six-week losing streak, while U.S. crude was below $74. The decline came despite speculation that the U.S. Federal Reserve has finished raising interest rates and the possibility that U.S. sanctions on Venezuelan supply could be tightened again.

Oil has recorded consecutive monthly declines due to rising supply from non-OPEC countries and a softening outlook for demand growth. The pullback followed the move by the Organization of the Petroleum Exporting Countries and its allies last week to deepen production cuts. The proposal came after a difficult meeting marked by internal strife as well as delays.

"Investors are likely to remain cautious given the discord within OPEC and rising non-OPEC oil production," said Charu Chanana, a market strategist at Saxo Capital Markets.

According to RBC Capital Markets LLC, crude oil will likely remain volatile and potentially directionless until the market sees clear data on the group's voluntary production cuts, which are set to take effect next month.

"We are re-entering a supply-driven market, rather than the demand-driven market seen in the post-pandemic era. And such markets are often full of traps," RBC analyst Michael Tran said in a note.