By Biman Mukherji
Oil futures fell on Monday on rising U.S. oil output, extending a slide from the end of last week.
On the New York Mercantile Exchange, light, sweet crude futures traded at $52.89 a barrel at 0400 GMT, down 28 cents in the Globex electronic session. Brent crude on London's ICE Futures exchange fell 29 cents to $55.23 a barrel.
"The rise in U.S. output should not be unexpected; however we expect the reductions being made by OPEC [the Organization of the Petroleum Exporting Countries] will far exceed any rise in the U.S. and quickly reduce the global inventory that has been built up over the past two years," ANZ Bank said in a report.
Oil-market action has largely been driven by OPEC and its recent decision with its allies to cut a collective 2% of global crude supply, a move aimed at balancing the market following more than two years of low prices and excess inventories.
"Crude oil is stuck in a range. Even the triggers for moving crude prices are benign," says Gnanasekar Thiagarajan, director of Commtrendz Risk Management. Crude oil prices have been see-sawing between gains and losses in recent weeks.
"The rebalancing in the market will certainly happen, but with supplies increasing in the U.S., prices will move in a tight range," said Mr. Thiagarajan, adding that prices may move with a "bullish bias" through 2017 because of the OPEC pact on trimming output.
Write to Biman Mukherji at email@example.com
(END) Dow Jones Newswires
January 29, 2017 23:42 ET (04:42 GMT)
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