| SINGAPORE, March 1
SINGAPORE, March 1 U.S. crude lost more ground
on Wednesday on rising U.S. oil output, although OPEC production
cuts continued to offer support.
A decline in U.S. gasoline futures on Tuesday also
pressured broader oil markets.
West Texas Intermediate crude futures had fallen 8
cents, or 0.2 percent, to $53.93 a barrel by 0023 GMT, while
Brent crude was yet to start trading.
U.S. crude stockpiles have risen for seven straight weeks.
Forecasts for another weekly build, this time of 3.1 million
barrels last week, fuelled worries that demand growth may not be
sufficient to soak up the global crude oil glut.
Gasoline was under pressure on the final trading day for the
March contract, the final month in which gasoline that complies
with environmental standards for winter-grade fuel is offered.
Abundant supplies of the fuel, which has different additives
from those required in the summer, have weighed on prices.
"Signs that the U.S. shale industry is recovering weighed on
the market," ANZ said in a report.
"One of the biggest shale producers, EOG Resources said it
had boosted its drilling budget by 44 percent after the recent
rally in prices."
U.S. stockpiles rose 2.5 million barrels in the week to Feb.
24, according to a report from trade group the American
Petroleum Institute. Gasoline stockpiles rose unexpectedly and
distillate stockpiles fell more than expected, the API said.
Crude declined slightly on the report.
The official report from the U.S. Energy Information
Administration is due at 1530 GMT on Wednesday.
The Organization of the Petroleum Exporting Countries (OPEC)
has cut its oil output for a second month in February, a Reuters
survey found on Tuesday, allowing the exporter group to boost
already strong compliance with agreed supply curbs on the back
of a steep reduction by Saudi Arabia.
(Reporting by Naveen Thukral; Editing by Joseph Radford)