Oil prices fall on relentless rise in U.S. crude output
Commodity Alert: Oil prices fall on relentless rise in U.S. crude output
Oil prices fell extending losses from the previous session, as the inexorable rise in U.S. crude output weighed on markets. Oil prices fell on the back of concerns that surging U.S. production ... could push inventories in the U.S. higher," ANZ bank said on Tuesday. U.S. crude oil production soared past 10 million barrels per day (bpd) in late 2017, overtaking output by top exporter Saudi Arabia. U.S. production is expected to rise above 11 million bpd by late 2018, taking the top spot from Russia, according to the International Energy Agency (IEA). The rising U.S. output comes largely on the back of onshore shale oil production. U.S. crude production from major shale formations is expected to rise by 131,000 bpd in April from the previous month to a record 6.95 million bpd, the U.S. Energy Information Administration (EIA) said in a monthly report on Monday.
Source : Investing