Oil prices fell as much as 2 percent on Monday after Iraq said it wanted to be exempt from an OPEC production cut, though prices drew some support from a rally in Wall Street shares and a draw in crude inventories at the U.S. storage hub of Cushing, Oklahoma.

U.S. West Texas Intermediate (WTI) crude settled down 33 cents, or 0.7 percent, to $50.52. Brent crude futures were down 30 cents, or 0.6 percent, at $51.48 a barrel by 2:42 p.m. ET (1842 GMT).

The Organization of the Petroleum Exporting Countries (OPEC) announced plans last month to cut output to boost prices, but has not yet given details on how it will reach the target. The group will iron out the details of how it will hit the target at its next meeting in Vienna on Nov. 30.

Iraqi oil minister Jabar Ali al-Luaibi said on Sunday the country, second largest producer in OPEC, wanted to be exempt from output curbs as it needed more money to fight Islamic State militants.

"This just casts one more spotlight onto potential uncertainty ahead of this meeting," said Matt Smith, director of commodity research at energy data provider ClipperData.