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

Reuters  |  NEW YORK 

By Ayenat Mersie

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

futures slipped 54 cents, or 0.8 percent, to settle at $64.95 per barrel. U.S. Intermediate (WTI) crude futures fell 68 cents, or 1.1 percent, to settle at $61.36 per barrel.

Hedge funds and money managers pared their bullish wagers on U.S. crude oil, with long positions falling last week for the first time in three weeks. Gross short positions on the <3067651MSHT> climbed to their highest in nearly a month.

That has undercut some of the enthusiasm for oil, as investors weigh increased U.S. supply against the likelihood that the Organization of the Exporting Countries and non-producers will maintain supply cuts that have been in effect for 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 U.S. production, and North American production levels in general, is going to negate a lot of the impact of that," said Gene McGillian, director of at

firm said on Friday that cut rigs for the first time in almost two months.

Still, the is now the world's no. 2 producer, ahead of top exporter

"We are maintaining a bearish trading stance in anticipation of a range in nearby WTI between about $58 and $63, Jim Ritterbusch, of Ritterbusch and Associates, said in a note.

"While Friday's favourable jobs data and rig decline might suggest a test of the high side of this expected range first, we still view downside price risk exceeding that to the upside," he said.

On Sunday, Iranian minister said could agree in June to begin easing current production curbs in 2019, reported.

Also on Sunday, Saudi officials said they would be delaying the initial public offering of until 2019.

This week's Consumer Price Index (CPI) release, given its potential impact on the dollar, could be critical, said Bill Baruch, of in The dollar tends to have an inverse relationship with prices, as a weaker greenback makes dollar-denominated commodities cheaper for holders of other currencies.

(Additional reporting by in London and Henning Gloystein in Singapore; Editing by and Sandra Maler)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Tue, March 13 2018. 01:14 IST