Crude Oil Prices Turn Higher Ahead of API Report

Investing.com – Crude oil prices turned higher on Tuesday, as investors turned their attention to this week’s U.S. supply reports, although ongoing concerns over U.S. production levels continued to weigh.

The U.S. West Texas Intermediate April contract was up 50 cents or about 0.81% at $61.86 a barrel by 03:35 a.m. ET (07:35 GMT), off session lows of $60.80.

Elsewhere, for May delivery on the ICE Futures Exchange in London advanced 58 cents or about 0.89% to $65.53 a barrel.

Oil prices initially came under pressure after the International Energy Agency (IEA) said in its monthly report on Monday that U.S. crude oil production jumped above 10 million barrels per day (bpd) at the end of 2017, overtaking output by top exporter Saudi Arabia.

The IEA also said that U.S. production is expected to rise above 11 million bpd by late 2018, outpacing Russia.

Separately, the U.S. Energy Information Administration (EIA) said that U.S. shale production is expected to rise by 131,000 bpd in April from the previous month to a record 6.95 million bpd. That would top the 105,000 bpd climb in March to what was then expected to be a record high of 6.82 million bpd.

The EIA is due to publish its weekly U.S. production on Wednesday, while the American Petroleum Institute’s will release its later Tuesday.

Fears that rising U.S. output could dampen global efforts to rid the market of excess supplies persist.

The Organization of the Petroleum Exporting Countries (OPEC), along with some non-OPEC members led by Russia, agreed in December to extend oil output cuts until the end of 2018.

Elsewhere, gained 0.41% to $1.904 a gallon, while were up 0.32% to $2.785 per million British thermal units.

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