MTECHTIPS;-Crude futures settle lower despite bullish Chinese

MTECHTIPS;-Crude futures settle lower despite bullish Chinese economic data

MTECHTIPS-Crude settled lower on Monday, despite bullish Chinese economic data, as investors weighed the impact of a ramp-up in U.S. oil production against OPEC efforts to drain the global glut in supply. On the New York Mercantile Exchange crude futures for May delivery fell by 53 cents to settle at $52.65 a barrel, while on London’s Intercontinental Exchange, Brent lost 44 cents to trade at $55.45 a barrel. Despite bullish economic data from China, the world’s second largest oil consumer, oil prices came under pressure on Monday, as investors focused on the impact rising levels of U.S. shale production could have on OPEC’s efforts to reduce oversupply, which has pressured prices over the last three years. Oilfield services firm Barker Hughes reported its weekly U.S. rig count rose by 11 to 683, it was the thirteenth straight weekly increase while Saudi Energy Minister said Monday that OPEC members are showing “very good” compliance with the deal to cut supply. Crude prices had notched three straight weeks of gains to recover from the slump in March, when prices fell to a five-month low of $47.01, on the back of concerns rising levels of U.S. oil production would dampened OPEC’s efforts to cut supply. Some analysts, however, remained adamant that OPEC-led cuts would offset rising levels of U.S. shale production. “In general, there is still upbeat sentiment that, even if U.S. shale production rises, OPEC’s output reduction will bring inventories back down to sustainable long-term levels.” Focus Economic noted in its Consensus Forecast Commodities report in April

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