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Crude Oil Prices Settle Near 2-Week Lows, IEA Report Triggers Oversupply Fears – Crude oil prices settled near two-week lows after the International Energy Agency (IEA) revised down its forecast for global demand growth and said it expects U.S producers to ramp up output.

On the New York Mercantile Exchange crude futures for December delivery fell 2% to settle at $55.70 a barrel, while on London's Intercontinental Exchange, Brent lost 1.47% to trade at $62.23 a barrel.

Crude prices came under pressure after the EIA revealed a somewhat downbeat outlook for oil demand in its monthly report, forecasting weakness in global demand growth, while warning that global oil markets will be oversupplied through the second quarter of 2018.

The IEA cut its oil demand growth forecast by 100,000 barrels per day (bpd) for this year and 2018, to an estimated 1.5 million bpd and 1.3 million bpd, respectively, as warmer temperatures were expected to weigh on consumption while rising output might add to glut in the crude supplies.

The reported said, however, that OPEC member compliance with deal to curb output improved, rising to 96% in October from 87% in September.

In May, Opec producers agreed to extend production cuts for a period of nine months until March, but stuck to production cuts of 1.2 million bpd agreed in November last year.

The report comes ahead of fresh inventory data from the American Petroleum Institute due Tuesday as well as a further report from EIA due Wednesday expected to show a decrease in domestic crude inventories.

Traders are expected to closely monitor U.S. crude production which rose 0.7% to an all-time high of 9.62 million barrels per day last week, the EIA said, that was the highest U.S. output since June 2015.

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