Oil down 1pc on continued concerns over U.S. output

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This has reduced some of the enthusiasm for oil, with investors weighing increased US supply against the likelihood that OPEC will maintain production cuts that have been in effect for more than a year.

ING's outlook is in contrast to bullish views from Royal Bank of Canada and Goldman Sachs Group Inc.to BMI Research and Societe Generale SA, which see prices supported as strong demand soaks up supply from the U.S. While Patterson does see healthy oil consumption, he said growth may slow and fail to completely absorb gaining American output.

NAIJ.com gathers that Brent sweet crude was at 65.70 dollars per barrel, up 21 cents, or 0.3 per cent, from their previous close.

The reduction came as gross short positions on the New York Mercantile Exchange climbed to their highest level in almost a month.

Brent crude futures LCOc1 were at $64.80 per barrel, down 15 cents, or 0.2 per cent.

The crude oil production in the USA rose to over 10 million barrels per day by the end of 2017, according to the International Energy Agency. Only Russia pumps more, at almost 11 million bpd.

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The report followed data from the EIA last week (http://www.marketwatch.com/story/oil-prices-under-pressure-ahead-of-us-supply-data-2018-03-07), which showed an increase of 86,000 barrels a day in total USA crude output for the week ending March 2.

In oil markets, US energy companies last week cut oil rigs for the first time in nearly two months, with drillers cutting back four rigs, to 796, Baker Hughes (GE.N) energy services firm said.

ING's Patterson agrees that keeping a lid on price hikes is necessary; in an interview in Singapore he said, "We need to see prices in the short-term trade below $60 to reduce that incentive for USA producers".

While US news has been dominated by the aluminum and steel tariffs proposed by President Donald Trump, the oil markets will not sustain significant price reactions, Poulsen said. It was the first such decline in seven weeks. Some of the pressure is coming from a recovery in the U.S. Dollar, which could affect foreign demand.

In other trading, April gasoline fell 0.5% to $1.894 a gallon, while April heating oil fell 1.2% to $1.865 a gallon. By January 9, it hit $68 before falling to $61.64 by February 1.

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