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WTI, Brent crude oil futures settle lower

WTI, Brent crude oil futures settle lower”

Oil rallied on Monday, erasing early losses after leading OPEC producer Saudi Arabia pledged to cut its exports to help speed up the rebalancing of global supply and demand. US West Texas Intermediate (WTI) crude futures settled up 57 cents or about 1.3 per cent to $US46.34 a barrel.

The lopsided market a year ago dragged crude oil prices below $30 per barrel.

Combined, Libya and Nigeria are adding about a quarter million barrels of oil per day to the market, while some of their fellow OPEC members cut production.

Ironically, or perhaps fulfilling earlier suggestions along these lines, OPEC's noncompliance may yet prove to be the best antidote-albeit a temporary one-to USA shale's aggressive growth, which has seen a near 50-percent increase to the number of active oil and gas rigs in 2017 alone.

Russian Energy Minister Alexander Novak said OPEC members and the 11 other countries should do even more to carry out their plan of reducing their overall output by 1.8 million barrels per day, compared to past year.

A promise from OPEC to cut production lifted oil prices to $50 last week, but few in the ene... Libya and Nigeria are already exempt from Opec cuts, and Ecuador very publicly broke ranks with the cartel last week and upped its production.

Nigeria, the top African oil producer, and Libya, both OPEC members, had been exempt from the agreement up to now due to problems affecting their industries.

OPEC production for July is expected to rise by about 145,000 barrels per day compared to June's output, according to preliminary estimates by Petro-Logistics, which tracks oil tanker movements.

Gold at 1254 broke above resistance at 1245 to register a high of 1257 Monday, but it may find it hard to rise above resistance at 1260 on the 1st run.

Falih said the issue of rising Libyan and Nigerian output would be addressed in the context of global supply and demand patterns, adding that demand was expected to grow by about 1.4 million to 1.6 million bpd next year, similar to 2017 and so should more than offset rising USA output.

FXTM research analyst Lukman Otunuga said: "With the oversupply fears still a major theme that continues to punish oil markets, investors will be paying very close attention to see if anything is discussed about the rising output in Nigeria and Libya".



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