MTECHTIPS;-Oil slides as rising OPEC output outweighs U.S. decline


MTECHTIPS;-Oil slides as rising OPEC output outweighs U.S. decline

MTECHTIPS-Oil prices eased on Monday after rising for seven sessions in a row, as evidence of increasing OPEC crude production snuffed out earlier gains made on the back of data that pointed to moderating U.S. output. Brent crude futures were down 13 cents on the day at $48.64 a barrel by 1000 GMT, off a session high of $49.15. The price rose 5.2 percent last week in its first weekly gain in six weeks. U.S. crude futures fell 4 cents to $46.00 a barrel. Drilling activity for new oil production in the United States fell for the first time since January, dropping by two rigs, while U.S. government data showed crude output fell in April for the first time this year. “Sentiment has turned and I think we should be going up (in price). I don’t think it’s going to last, but the momentum at the moment is with the bulls,” PVM Oil Associates strategist Tamas Varga said. The drop in U.S. rig count and U.S. Energy Information Administration figures showing output fell by 24,000 barrels per day (bpd) on a monthly basis “sent out a short-term bullish message,” he said. The oil price is still down 14 percent so far this year, as strong global demand has not been enough to absorb rising output from the United States, Nigeria, Libya and other locations, such as the Brazil and the North Sea

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