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Oil prices fell more than 0.5 percent on Wednesday as bullish output forecasts by two big U.S. producers outweighed recent OPEC-led efforts to rein in crude production.<\/p>\n
U.S. West Texas Intermediate (WTI) crude futures were at $56.15 per barrel, down 41 cents, or 0.7 percent. WTI futures closed little changed on Tuesday.<\/p>\n
International Brent futures had yet to trade after closing up 0.3 percent on Tuesday.<\/p>\n
“Oil is likely to play ‘tug of war’ here, with production cut promises to be countered with rising output from the U.S.,” said Edward Moya, senior market analyst, OANDA.<\/p>\n
Chevron Corp and Exxon Mobil Corp released duelling Permian Basin projections on Tuesday pointing to big increases in shale oil production.<\/p>\n
If realized, the increases would cement the rivals as the dominant players in the West Texas and New Mexico field, with one-third of Permian production potentially under their control within five years.<\/p>\n
Data from the American Petroleum Institute (API), an industry group, also showed larger-than-expected U.S. crude stockpiles.<\/p>\n
U.S. crude inventories rose by 7.3 million barrels in the week ending March 1 to 451.5 million, compared with analysts’ expectations for an increase of 1.2 million barrels, API said. Crude stocks at the Cushing, Oklahoma, delivery hub rose by 1.1 million barrels.<\/p>\n
The rise in North American production added to concerns over a much anticipated U.S.-China trade deal.<\/p>\n
U.S. Secretary of State Mike Pompeo said President Donald Trump would reject any trade deal that is not perfect, but added the White House would keep working on an agreement.
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