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Oil down 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 OPEC supply, while last week's data showing speculators cut bets on suggested more selling could be seen.

Brent crude futures were down $1.16, or 1.8 percent, by 11:45 a.m. EDT (1545 GMT), to trade at $64.33 per barrel.

U.S. Intermediate (WTI) crude futures fell $1.21, or 2 percent, to $60.83 per barrel.

Hedge funds and money managers have 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 climbed to their highest level 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 Petroleum Exporting Countries and non-OPEC 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, 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

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

Also on Sunday, Saudi officials told their British counterparts that 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 end up being critical, said Bill Baruch, of in The dollar tends to have an inverse relationship with the price of oil, 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 Jason Neely)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, March 12 2018. 22:26 IST