Investing.com – WTI crude oil prices settled lower as ongoing fears over rising U.S. crude output offsetting bullish data showing crude output from OPEC fell to a 10-month low in February.
On the New York Mercantile Exchange crude futures for April delivery fell 1.1% to settle at $60.99 a barrel, while on London's Intercontinental Exchange, Brent fell 1.21% to trade at $63.93 a barrel.
Crude oil prices bounced off their lows of $60.20 a barrel heading into settlement but ultimately settled lower as traders continued to fret Wednesday’s data showing U.S. crude supplies rose more than expected while domestic output remained near historic highs.
Domestic crude production rose to 10.3 million barrels per day, the Energy Information Administration said Wednesday. That leaves the U.S. as the world’s second largest oil producer as it closes in on leading producer, Russia, adding to fears that OPEC’s efforts to rebalance oil markets will come under pressure.
Investor fears were allayed somewhat, after Bloomberg News survey showed OPEC members continued to slash output which fell 80,000 barrels a day to 32.28 million a day in February. That was the lowest since 31.89 million seen in April.
The fall in the group’s output was mainly drive by production declines in Venezuela and the United Arab Emirates (UAE).
UAE production fell by 50,000 barrels per day to below its OPEC target, while Venezuelan output fell to 1.68 million barrels in February, down 30,000 barrels a day, from the previous month.
Venezuela’s oil industry has remained under pressure as growing political turmoil continues to drive investment away from the industry with looming U.S. sanctions also weighing on sentiment.