SINGAPORE, April 13 Crude oil futures slid for a
second session on Thursday, moving away from a one-month high
touched in the last session as rising U.S. inventories stoked
worries about global oversupply.
Benchmark Brent crude futures slid 24 cents, or 0.4
percent, to $55.62 a barrel in early Asian trade. The market
climbed to a one-month high of $56.65 on Wednesday before losing
U.S. West Texas Intermediate crude futures were down
23 cents, or 0.4 percent, at $52.88 a barrel. They touched their
highest since March 7 at $53.76 barrel in the last session.
Traders focused on preliminary U.S. production estimates in
the weekly Energy Information Administration (EIA) report that
suggested domestic output is still climbing. The report also
showed stockpiles at the U.S. crude hub at Cushing, Oklahoma,
rose 276,000 barrels in the week.
"U.S. oil production rose to the highest level in over a
year, leaving oil prices weaker on the day after the U.S. EIA
released its data," ANZ said in a note.
"U.S. production rose 36,000 barrels per day, the most since
January 2016 and the Baker Hughes rig count of 672 is the
highest since August 2015."
Brent and WTI have rallied in recent sessions after Saudi
Arabia was reported to be pushing fellow OPEC members and some
rivals to prolong supply cuts beyond June.
OPEC and other producers, including Russia, agreed late in
November to curb output by around 1.8 million barrels per day in
the first half of 2017 to rein in oversupply.
The U.S. data followed bullish reports from OPEC nations,
which said they had cut March output beyond measures they had
promised, according to figures the group published in a monthly
report, as it sticks to an effort to clear a glut that has
weighed on prices.
However, OPEC also raised its forecast for supplies from
non-member countries in 2017 as higher prices encourage U.S.
shale drillers to pump more, reducing demand for OPEC's oil this
(Reporting by Naveen Thukral; Editing by Joseph Radford)