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* EIA says U.S. shale oil output to rise from last record
* U.S. April shale output to be 6.95 mln bpd -EIA
* March shale output already expected at record 6.82 mln bpd
* Shale pushes overall U.S. output to more than 10 mln bpd
* U.S. crude output to break through 11 mln bpd this year-IEA (Adds comment, reduction in long positions, updates prices)
By Henning Gloystein
SINGAPORE, March 13 (Reuters) – Oil prices dipped onTuesday, extending losses from the previous session, as theinexorable rise in U.S. crude output weighed on markets.
U.S. West Texas Intermediate (WTI) crude futures CLc1 wereat $61.18 a barrel at 0747 GMT, down 18 cents, or 0.3 percent,from their previous close.
Brent crude futures LCOc1 were at $64.77 per barrel, down18 cents, or 0.3 percent.
Both crude benchmarks dropped by around 1 percent in theirMonday sessions. urn:newsml:reuters.com:*:nL3N1QU1A1
“Oil prices fell on the back of concerns that surging U.S.production … could push inventories in the U.S. higher,” ANZbank said on Tuesday.
Healthy demand and ongoing supply restraint by a group orproducers led by the Organization of the Petroleum ExportingCountries (OPEC) and Russia, however, are preventing furtherprice falls.
But in a sign that an early-year rally in crude oil hasfizzled out, money managers cut their combined net longpositions in the six most important futures and optionscontracts linked to petroleum prices by 50 million barrels inthe week to March 6. urn:newsml:reuters.com:*:nL8N1QU48X
Scaring off traders betting on further price increases hasbeen a relentless rise in U.S. crude oil production C-OUT-T-EIA , which soared past 10 million barrels per day(bpd) in late 2017, overtaking output by top exporter SaudiArabia.
U.S. production is expected to rise above 11 million bpd bylate 2018, taking the top spot from Russia, according to theInternational Energy Agency (IEA). urn:newsml:reuters.com:*:nL4N1QH2BK
“Oil prices pulled back yesterday as basic fundamentals ofoversupply continued to worry the markets,” said SukritVijayakar, director of energy consultancy Trifecta in a note.
The rising U.S. output comes largely on the back of onshoreshale oil production.
U.S. crude production from major shale formations isexpected to rise by 131,000 bpd in April from the previous monthto a record 6.95 million bpd, the U.S. Energy InformationAdministration (EIA) said in a monthly report on Monday.
“Oil prices moved lower … after (the) Energy InformationAdministration published a report that crude production fromseven major U.S. shale plays is expected to see a climb,” saidStephen Innes, head of trading for Asia/Pacific at futuresbrokerage OANDA in Singapore.
That expected increase would top the 105,000 bpd climb inMarch from the previous month, to what was then expected to be arecord high of 6.82 million bpd, the EIA said. urn:newsml:reuters.com:*:nL1N1QU1BJ
The EIA is due to publish its latest weekly U.S. productiondata on Wednesday. EIA/SAPI/S
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(Reporting by Henning Gloystein; Editing by Joseph Radford andTom Hogue) ((Henning.email@example.com; +65 6870 3263; Twitter:@hgloystein))