Oil down on continued concerns over United States output

Oil down on continued concerns over United States output

Brent crude, the benchmark for more than half the world's oil, traded at $65.07 a barrel at 10:11 a.m.in London on Monday, compared with about $45 in June.

April West Texas Intermediate crude lost 68 cents, or 1.1%, to settle at $61.36 a barrel. The contract rose 3% Friday, to end at $65.49 a barrel on the ICE Futures Europe exchange-up 1.7% for the week.

Then, 617 rigs were active, and most analysts expect USA crude oil production, which has already risen by more than a fifth since mid-2016, to 10.37-million barrels a day to expand further.

"The big take away is the implied annual rate of change", James Williams, energy economist at WTRG Economics, told MarketWatch.

The oil production in the United States is not the only problem.

The renewed confidence in oil comes as investors increasingly grow concerned that U.S. crude producers may undermine efforts by the Organization of Petroleum Exporting Countries and its allies to curb output.

Williams also pointed out that based on the figures, USA shale plays this year will "add enough to US production to match all the oil Venezuela now produces". "That figure was close to in line with the February average weekly increase of 91,000 [barrels a day] and is still more than four times greater than the pace of production growth in 2017", said Tyler Richey, co-editor of the Sevens Report.

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Energy investors weighed increased USA supply against the likelihood that the Organization of the Petroleum Exporting Countries (OPEC) will maintain supply cuts that have been in effect more than a year.

"The market continues to flip back and forth on the idea that increased global demand and a production cut is going to support prices. but USA production, and North American production levels in general, is going to negate a lot of the impact of that", said Gene McGillian, director of market research at Tradition Energy.

OPEC's oil production cut agreement could start falling apart soon, as Saudi Arabia and Iran once again face off.

NEW YORK, March 12 (Reuters) - Oil prices fell on Monday as investors grappled with ongoing concerns over rising USA output and tight OPEC supply, while last week's data showing speculators cut bets on oil suggested more selling could be seen.

"The longer the deal goes on, it's going to start falling apart", Patterson said in an interview in Singapore, referring to an output-cut agreement between the Organization of Petroleum Exporting Countries and other producers including Russian Federation.

Although crude's value has risen over 20% in the last six months, oil futures have been buffeted by a short-term bearish prognosis as USA output has revved up and crude stocks have swelled to record highs. Only Russia pumps more, at almost 11 million bpd.

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