Oil prices dip on bloated United States market, mixed Saudi signals

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Oil prices dip on bloated United States market, mixed Saudi signals

A preliminary Reuters poll showed analysts expected data to show USA crude oil stocks fell in the week to April 14, building on a surprise decline the previous week. Their intraday low was $52,14, also the weakest since April 7.

Industry data show crude oil inventory levels on the decline, suggesting some supply-side strains are fading, but USA metrics have been consistent with estimates of gains in crude oil production.

OPEC members Saudi Arabia and Kuwait signaled that an effort by the Organization of the Petroleum Exporting Countries and other producers, including Russian Federation, to cut oil output was likely to be extended beyond June.

Gasoline stocks posted a counter-seasonal build of 1.5 million barrels, despite heavier refining activity.

Brent for June settlement fell 45 cents to $54.44 a barrel on the London-based ICE Futures Europe exchange.

Saudi Arabia, Iraq and Kuwait believe $60 a barrel will lift their economies and allow for more energy-industry investment, the officials said, without jumpstarting too much American shale output, which can be ramped up and down with prices more easily than most oil production.

"OPEC and Russian Federation would love to see the price higher but it requires a not yet achieved 100 percent non-OPEC compliance, combined with a slowdown in USA production growth", Hansen told UPI in response to emailed questions. As OPEC & co. cut, they cede market share to their American rivals, and as oil prices rise, those US shale producers are predictably taking advantage and upping their own output.

Output from the Permian play, the country's largest shale region, was expected to reach a record 2.36 million bpd.

Analysts said they expected crude inventories to have fallen by around 1,5 million barrels last week.

It would be premature to talk about the participation of OPEC members Iran, Nigeria and Libya in any extension of output limits, Barkindo and United Arab Emirates Energy Minister Suhail Al Mazrouei said at the conference. US crude inventories were at 532.3 million barrels, which is only 3 million less than the new March record. Oil prices will increase as demand improves and chips away at inventories in the second half, he said.

While more OPEC members are seen ready to extend output cuts, USA crude stockpiles dropped from a record.

In politics, U.S. President Donald Trump ordered a review of whether the lifting of sanctions against Iran was in the United (Shenzhen: 000925.SZ - news) States' national security interests.

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.

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