Oil is sliding after the US withdraws from the Paris Climate Accord

Oil prices are falling in early Friday trading. West Texas Intermediate crude oil is down 1.23% at $US47.44 a barrel.

The drop comes amid concerns of an excess of oil supply, despite a bigger-than-expected draw of US crude oil inventories last week.

At the end of May, OPEC and non-OPEC countries agreed to extend their production cuts until March 2018, which disappointed traders who were expecting deeper cuts. Crude oil prices fell about 5% after that announcement, to about $US48.90 a barrel.

Some experts are now concerned any cuts by OPEC countries will be negated by increased drilling in the US after President Trump announced a US withdraw from the Paris accord, though some are sceptical.

Brent crude oil prices dropped below $US50 on Friday, the first time since May 10th.

NOW WATCH: Science says lasting relationships come down to 3 basic traits

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.