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Oil prices stable after two-day decline, but rising U.S. output drags

Reuters  |  SINGAPORE 

By Gloystein

(Reuters) - stabilised early on Wednesday after posting two days of falls at the start of the week.

Support on Wednesday came from a report that U. S. crude inventories are not rising as much as expected during the spring season that is starting, implying healthy demand.

U. S. Intermediate (WTI) crude futures were at $60.86 a barrel at 0033 GMT, up 15 cents, or 0.25 percent, from their previous close.

Brent crude futures were at $64.70 per barrel, up 6 cents, or 0.1 percent.

U. S. crude inventories rose by 1.2 million barrels in the week to March 9, to 428 million barrels, the said on Tuesday.

That compared with analysts' expectations for an increase of 2 million barrels.

Refinery crude runs rose by 85,000 barrels per day (bpd), data showed. [nZXN049100]

Despite this, general market conditions remain weak, and crude prices have not managed to return to their early 2018 highs of over $70 per barrel for Brent and almost $67 a barrel for WTI.

"The ever-expanding U. S. supply continues to pose significant downside risk to oil prices," said Stephen Innes, head of trading for Asia/Pacific at in

U. S. has risen by almost a quarter since mid-2016 and output soared past 10 million bpd in late 2017, overtaking production by top exporter

U. S. crude production, pushed up largely by shale oil drilling, is expected to rise above 11 million bpd by late 2018, taking the top spot from Russia, according to the [nL4N1QH2BK]

weekly U. S. and inventory figures are due to be published by the (EIA) later on Wednesday. [EIA/S]

Outside the United States, returned to normal operations late on Tuesday after workers who were blocking ships from docking agreed to end a one-day strike, two sources said.

Zawiya exports crude from Libya's giant oilfield, which produces 300,000 bpd, more than a quarter of the North African country's output.

(Reporting by Gloystein; Editing by Joseph Radford)

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

First Published: Wed, March 14 2018. 06:53 IST