Oil prices sank 1% in early Thursday trade, extending losses from the previous session, as OPEC+ postponed a ministerial meeting, fueling speculation that members will cut output less than previously anticipated.

Brent futures slid 81 cents, or 1%, to $81.15 per barrel after falling as much as 4% earlier in the day. After falling as much as 5% in the previous session, West Texas Intermediate crude fell 72 cents, or 0.9%, to $76.40.

Due to the Thanksgiving break in the United States, trade was predicted to remain subdued.

In an unexpected move, the Organization of Petroleum Exporting Countries and its allies, including Russia, postponed a ministerial meeting where they were scheduled to negotiate oil supply limits to November 30.

According to OPEC+ sources, producers were unable to agree on output levels and thus prospective reductions ahead of the November 26 meeting.

Three OPEC+ sources, however, indicated this was due to African countries, which are the group's lesser producers, which assuaged investor concerns.

The concerns over OPEC+ supplies come as data reveal that US petroleum stocks increased by 8.7 million barrels last week, well exceeding the 1.16-million increase predicted by economists. [EIA/S]

The number of oil rigs in the United States stayed steady at 500 in the week ending November 22, according to Baker Hughes' carefully watched data on Wednesday. [RIG/U]

Meanwhile, an underwater pipeline breach has shut down around 3% of crude oil production in the Gulf of Mexico, or about 61,165 barrels of daily output, according to the US Coast Guard.