Saudi's Falih says more oil output cuts possible, will assess in July

Saudi's Falih says more oil output cuts possible, will assess in July

"Greater OPEC restraint will help to shore up prices, but we do not expect it to be enough to push prices above $55 per barrel on average in 2017-18", said Cailin Birch, an analyst at the Economist Intelligence Unit.

Oil prices were mixed on Thursday, with Brent crude down on concerns that key producers were still adding to the global crude glut but USA crude up slightly after a larger-than-expected domestic inventory drawdown.

U.S. West Texas Intermediate crude fell $1.34, or 2.7 percent, to settle at $48.32 per barrel, its lowest close since May 12. Oil exports from the country also reached over 1 million barrels a day in late May, according to Bernstein Research. It's what the market needs to get a little more excited about prices.

On Wednesday, global benchmark Brent crude futures were down 52 cents at $51.32 a barrel by 0838 GMT.

November's deal between the Organization of the Petroleum Exporting Countries and non-OPEC members like Russian Federation has been slow to take hold, as many nations sold inventory out of storage before truly cutting exports.

NEW YORK, June 2 (Reuters) - Crude fell more than 1 percent on Friday, heading for a second straight week of losses, on worries that U.S. President Donald Trump's decision to withdraw from an worldwide climate accord will spur further domestic production and contribute to a persistent global oversupply.

Output in May increased from 315,000 barrels per day earlier month to 32.21 million.

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The general trend among US producers points to a need to boost growth forecasts amid anticipated production acceleration the second half of this year, said consultancy Energy Aspects.

USA crude production rose almost 500,000 barrels per day (bpd) last week from year-earlier levels.

There were underlying concerns surrounding increased supplies from Nigeria and Libya given with no immediate move by OPEC to bring these two producers into the production agreement and cap output.

A week ago, the Organization of the Petroleum Exporting Countries (OPEC) and some non-OPEC members met in Vienna to roll over the output cut deal to reduce 1.8 million barrels per day (bpd) until the end of next March.

Part of the problem is that production is increasing in members such as Libya and Nigeria, which are exempt from making cuts as they restore output after internal strife, said BP chief executive officer Bob Dudley. Speculators fled bearish positions for a second week.

He questioned the efficiency of the output cuts, saying oil producers were losing market share to USA firms, which are not part of the deal.

OPEC last week discussed reducing output by a further 1% to 1.5%, and could revisit the proposal should inventories remain high, sources told Reuters.

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