* U.S. crude inventories rise to 533.6 million barrels - API
* U.S. oil output up 8 pct since mid-2016 to over 9.1
* Rising U.S. production undermines OPEC's effort to cut
* Goldman Sachs warns of renewed oil oversupply from 2018
By Henning Gloystein
SINGAPORE, March 22 Oil prices dipped on
Wednesday as rising crude stocks in the United States
underscored an ongoing global fuel supply overhang despite an
OPEC-led effort to cut output.
Prices for front-month Brent crude futures, the
international benchmark for oil, were at $50.92 per barrel at
0051 GMT, down 4 cents from their last close.
U.S. West Texas Intermediate (WTI) crude futures were down 8
cents at $48.16 a barrel.
"Crude oil prices fell as concerns over rising U.S.
inventories resurfaced... Rising exports in Libya also weighed
on prices," ANZ bank said on Wednesday.
U.S. crude oil inventories rose by 4.5 million barrels in
the week to March 17 to 533.6 million, the American Petroleum
Institute (API) said late on Tuesday.
The bloated storage comes as U.S. oil production
C-OUT-T-EIA has risen over 8 percent since mid-2016 to more
than 9.1 million barrels per day (bpd) to levels comparable in
late 2014, when the oil market slump started.
Rising production in the United States and elsewhere, and
bloated inventories, are undermining efforts led by the
Organization of the Petroleum Exporting Countries (OPEC) to cut
output and prop up prices.
"2017-19 is likely to see the largest increase in mega
projects production in history," Goldman Sachs said in a note to
clients on Tuesday.
"Led by U.S. shales, (this) could create a material
oversupply in 2018-19. As OPEC prepares for its May 25 meeting,
it is likely to weigh the relative benefit of stability (extend
the cut) vs. the risk of long-term (market) share loss," the
(Reporting by Henning Gloystein; Editing by Richard Pullin)