MTECHTIPS;-NYMEX, Brent down in Asia as investors eye U.S. shale
MTECHTIPS;-NYMEX, Brent down in Asia as investors eye U.S. shale producers
MTECHTIPS- Crude oil prices drifted weaker on Tuesday as investors booked profits on recent gains led by plans for OPEC and non-OPEC producers to trim output by nearly 1.8 million barrels per day (bpd) and cast an eye on U.S. shale producers. On the New York Mercantile Exchange crude futures for February delivery fell 0.17% to $52.97 a barrel. Global benchmark Brent crude fell 0.27% to $54.88 a barrel on London’s Intercontinental Exchange Overnight, crude prices fell as U.S. oil output is poised to grow as American energy companies last week continued to add oil rigs, extending a seven-month drilling comeback enough to replace planned output cuts by OPEC, Russia, and other producers early next year. Brent oil futures for February delivery were down by 24 cents, or 0.4%, at $54.97 a barrel just before noon. U.S. West Texas Intermediate crude for January rose 6 cents, or 0.1%, to $51.96 per barrel. “Implied U.S. output increases…will offset a significant portion of the planned OPEC production cuts especially since we don’t anticipate sustained strong compliance,” Jim Butterscotch, president of the noted Chicago-based energy advisory firm Butterscotch & Associates, said in a research memo to investors.