Oil, briefly up on lower rig counts, falls on United States output outlook

Pipelines at Enbridge Inc.'s tank farm in Oklahoma. Oil futures have been buffeted as U.S. output has increased and crude stocks have swelled to record highs

Oil Holds Gain as US Drilling Eases for First Time in 7 Weeks

Oil prices dipped on Tuesday as the United States continues to pump more crude into an already saturated market.

Crude oil prices slipped into negative territory early Monday, following big gains last week, as broader global trade concerns spill into commodities.

At 0820 GMT, May WTI Crude Oil is trading $61.19, down $0.14 or -0.23% and June Brent Crude Oil is at $64.65, down $0.14 or -0.22%.

Both crude benchmarks dropped by around 1 percent on Monday after the U.S. Energy Information Administration said output from the shale basin would hit a new record high in April.

"Libyan oil loadings have been suspended, that's why the market is rallying at the moment", PVM Oil Associates analyst Tamas Varga said.

USA crude oil production soared past 10 million barrels per day (bpd) in late 2017, overtaking output by top exporter Saudi Arabia.

"Permian and Bakken shale basins still saw active oil rigs rising by 2 and 3 last week, respectively, and are likely to keep USA oil production on (an) increasing trend", ING said.

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That expected increase would top the 105,000 bpd climb in March from the previous month, to what was then expected to be a record high of 6.82 million bpd, the EIA said.

US production is also expected to rise above 11 million bpd by late 2018, taking the top spot from Russian Federation, according to the International Energy Agency (EIA).

While the producer group complied with a pledge to curb output and ease a glut in 2017, USA flows that are gaining a bigger slice of the prized Asian market may prompt some nations to boost supplies, said Warren Patterson, a commodities strategist at the Dutch bank.

The predictions and the forecasts for the oil production are looking grim at an expected 11 million barrels per day and more by the end of the year. "Thus, Opec has no scope to expand production from its current level".

For the first time since 2014, Brent oil reached $71 per barrel, as well as WTI crude futures rising to $66.35 per barrel, the highest price mark since December 2016. The U.S. benchmark gained $1.92 to $62.04 on Friday.

Friday's strong USA payroll data, which showed a hefty 313,000 rise in jobs but tempered growth in hourly earnings, supported Treasuries in Monday trade.

U. S. Stocks closed mixed, with the S&P 500 and Dow Jones Industrial Average ending in the red, while the Nasdaq Composite added about 28 points.

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