Oil price settled below the $50 (P2,412.25) per barrel on Tuesday, following the doubts over the commitment of the Organization of Petroleum Exporting Countries (OPEC) to cut production. The American crude supplies also surged upward, which also signify that oil prices could press down further.

The International Brent crude oil futures fell 89 cents, or 1.7 percent, to $50.57 (P2,443.26) per barrel by 2:40 p.m. ET (1840 GMT). The U.S. West Texas Intermediate (WTI) crude futures settled down 56 cents, or 1.1 percent, to $49.96 (P2,413.79) a barrel.

OPEC Uncertainties

Verbal pronouncements from members of the OPEC such as Iran and Russia brought uncertainties to the commitment that the organization pledged last September.

READ: 3 Fast Facts About OPEC Reaching Agreement To Limit Oil Production

Recent doubts came from Iraq, the second-largest producer in OPEC, as it said on Sunday that it wanted to be exempted from the deal. It reasoned that it needed to increase oil production to fund the war against Islamic State militants.

Iran announced last week that it will boost oil output to 4 million barrels a day this year. Analysts said this gave complications to the oil freeze deal that OPEC agreed.

 “Opec is not a well-oiled machine when it comes to implementing cuts,” The Business Times reported Jay Hatfield, the New York-based portfolio manager of the InfraCap MLP ETF, as saying. Hatfield added that OPEC is deeply divided politically.

Increased US Inventory

The American Petroleum Institute (API) also released on Tuesday its US crude inventory. It showed that there was an increase of 4.8 million barrels this week. The market still waits for the report to be released by the Energy Information Administration (EIA).

“You’ve gone from a very optimistic sentiment immediately following the Algiers announcement to a sentiment that’s more skeptical of the ability of OPEC to pull off a meaningful cut,” Oil Price reported Paul Crovo of the Philadelphia-based consulting company by PNC Capital, as saying.

What do you think of the oil price settling lower than $50 per barrel? Let us know in the comments section below.