Australia Markets closed

Crude Oil Prices Move Lower on U.S. Output Rise

Crude oil prices lose ground as U.S. production rises - Crude oil prices moved lower on Tuesday, following news of another increase in U.S. production and as investors awaited this week's U.S. supply reports.

The U.S. West Texas Intermediate crude April contract was down 17 cents or about 0.31% at $61.19 a barrel by 03:35 a.m. ET (07:35 GMT).

Elsewhere, Brent oil for May delivery on the ICE Futures Exchange in London lost 20 cents or about 0.31% to at $64.75 a barrel.

Oil prices came under pressure after the International Energy Agency (IEA) said in its monthly report on Monday that U.S. crude oil production jumped above 10 million barrels per day (bpd) at the end of 2017, overtaking output by top exporter Saudi Arabia.

The IEA also said that U.S. production is expected to rise above 11 million bpd by late 2018, outpacing Russia.

Separately, the U.S. Energy Information Administration (EIA) said that U.S. shale production is expected to rise by 131,000 bpd in April from the previous month to a record 6.95 million bpd. That would top the 105,000 bpd climb in March to what was then expected to be a record high of 6.82 million bpd.

The EIA is due to publish its weekly U.S. stockpiles data on Wednesday, while the American Petroleum Institute's will release its report later Tuesday.

Fears that rising U.S. output could dampen global efforts to rid the market of excess supplies persist.

The Organization of the Petroleum Exporting Countries (OPEC), along with some non-OPEC members led by Russia, agreed in December to extend oil output cuts until the end of 2018.

Oil prices were initially boosted after Baker Hughes energy services firm said on Friday that the number of active U.S. oil rigs declined by four last week to 796. It was the first decline in seven weeks.

The commodity also received support after Friday's upbeat U.S. employment data. Traders hope more job creation will boost fuel demand.

Elsewhere, gasoline futures slid 0.40% to $1.887 a gallon, while natural gas futures were up 1.01% to $2.806 per million British thermal units.

Related Articles

U.S. farm group targets Trump with free-trade ads

Oil majors' interest in Argentina tests free-market reforms

Oil prices dip on relentless rise in U.S. crude output