The oil market has been caught in a tug-of-war, with OPEC production cuts supporting prices while signs of rising USA production have pressured crude on concerns about a glut.
John Kilduff, founding partner of Again Capital, agrees: "There's renewed faith that OPEC and non-OPEC will be able to get global inventories lower", he told Bloomberg, adding, "we're also looking forward to the ramp-up of refineries before the summer driving season, which will also help lower crude inventories".
Oil saw mixed trading on Tuesday, buoyed by signs that Saudi Arabia and Russian Federation are sticking to their pledge to cut crude production, but pressured by concerns about further growth in US output.
U.S. West Texas Intermediate crude futures were also down 18 cents at $53.
Benchmark Brent crude futures were down 50 cents at $55.39. They touched $54.76 intraday, the lowest since April 7. On Thursday, before major markets closed for a holiday break, they settled up 3 cents at $55.89 a barrel. Prices lost 53 cents to $52.65 on Monday, the lowest close since April 7.
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He's also drained three of the five three-pointers he's taken, which doesn't bode well for a sluggish Derrick Favors. Rodney has shown his ability to create his own shot off the dribble, but it hasn't come with much consistency.
U.S. drilling is now set to increase by 123,000 barrels a day in May, according to the U.S. Energy Information Administration, the steepest monthly rise since February 2015. Output from the Permian play, the country's largest shale region, was expected to reach a record 2.36 million bpd.
Oil prices dipped lower in early Europe on Tuesday with further concerns surrounding rising United States shale production while a generally weak tone in commodity prices also pulled prices lower.
Saudi Arabia is bearing the brunt of the output cuts that members of the Organisation of Petroleum Exporting Countries pledged to make in the first six months of this year.
On Tuesday, the energy minister of Opec member the United Arab Emirates said he saw healthy oil demand growth this year and believed inventories would fall. Retail sales in the US fell for a second straight month in March and consumer prices dropped for the first time in just over a year, official data showed on Friday.
"With a continuation of the OPEC and non-OPEC producer deal in the second half of 2017 and the expected associated inventory draw-down, we expect oil prices to move above $60 a barrel by the second half of the year", the analysts wrote in the note. Off-topic, inappropriate or insulting comments will be removed.