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Crude Oil Prices Slip Lower as Focus Turns to U.S. Supply Data

Published 06/03/2018, 08:42
Updated 06/03/2018, 08:47
© Reuters.  Crude prices retreat but remain supported by IEA report
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Investing.com - Crude oil prices turned lower on Tuesday, as traders turned their attention to this week's U.S. supply data, although news global oil demand should outpace production continued to support.

The U.S. West Texas Intermediate crude April contract was down 5 cents or about 0.08% at $62.52 a barrel by 03:40 a.m. ET (07:40 GMT), just off a one-week high of $62.87 hit overnight.

Elsewhere, Brent oil for May delivery on the ICE Futures Exchange in London fell 15 cents or about 0.23% to $65.39 a barrel.

Market participants were eyeing the weekly report by the American Petroleum Institute on U.S. oil supplies due later Tuesday. Official data by the U.S. Energy Information Administration was expected on Wednesday.

Oil prices found support after the International Energy Agency said on Monday that global oil demand was expected to grow in the next five years, while output from producers in the Organization of the Petroleum Exporting Countries (OPEC) would rise at a much slower pace.

OPEC, along with some non-OPEC members led by Russia, agreed in December to extend oil output cuts until the end of 2018.

The deal to cut oil output by 1.8 million barrels a day (bpd) was adopted last winter by OPEC, Russia and nine other global producers. The agreement was due to end in March 2018, having already been extended once.

Priced initially retreated after the IEA upwardly revised U.S. oil output growth, saying the country would be producing a total of nearly 17 million barrels per day (bpd) in 2023.

U.S. crude oil production has already surpassed that of top exporter Saudi Arabia to 10.28 million bpd.

Rising U.S. output has weighed on oil prices in recent months amid fears it could dampen global efforts to rid the market of excess supplies.

Elsewhere, gasoline futures slid 0.69% to $1.922 a gallon, while natural gas futures edged up 0.15% to $2.708 per million British thermal units.

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