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Oil edges up as U.S. President Trump set to meet North Korea's Kim

Reuters  |  SINGAPORE 

By Henning Gloystein

SINGAPORE (Reuters) - rose on Friday as Asian stock markets gained on that North Korean leader Un will meet with U.S.

The two will likely meet by and Kim has pledged to refrain from further nuclear or missile tests, South Korea's said late on Thursday after briefing officials on talks between and

The said Trump would accept the invitation at a place and time to be determined.

The lifted Asian stocks markets, and pulled along with them, traders said.

Brent futures were at $63.79 per barrel at 0753 GMT, up 18 cents, or 0.3 percent, from their previous close.

U.S. Intermediate (WTI) futures were at $60.24 a barrel, up 12 cents, or 0.2 percent.

Despite these increases, Brent and WTI are on course for weekly declines of almost 1 percent and 1.6 percent, respectively.

Traders said the weakness is due to soaring output from the United States, which has risen by 23 percent since the middle of 2016, to 10.37 million barrels per day (bpd).

"The market continues to struggle to shake off an excess supply... (boosted) by increased supply from a growing U.S. shale patch," said on Friday.

Thanks largely to shale drilling, the now produces more than top exporter Only pumps more, at almost 11 million bpd.

"It seems only a matter of time before the U.S. becomes the biggest in the world. The main question which keeps investors busy is when exactly this will be reached," Hans van Cleef, economist at Dutch ABN Amro, said in a note to investors.

Unlike producers, where output is largely dictated by companies, U.S. producers drill and sell purely based on economics. If prices remain at current levels or rise further, U.S. drillers are profitable and will raise output; if prices stumble, U.S. production will fall.

"The correlation between the U.S. and the will remain considerable," van Cleef said.

As much as production, will also depend on demand.

Here, there are signs of a slowdown, although much of this could be seasonal as the Northern Hemisphere winter ends.

Iran's and condensate exports are set to fall by 21 percent in March, compared with the previous month, to 1.94 million bpd, according to a source with knowledge of the tanker schedules. That is the lowest since March 2016.

Compared to a year ago, March liftings from will be down 26 percent.

(Reporting by Henning Gloystein; Editing by and Christian Schmollinger)

(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: Fri, March 09 2018. 15:37 IST