MTECHTIPS;-Oil Prices Rise Against Increasing Russian Output

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MTECHTIPS;-Oil Prices Rise Against Increasing Russian Output

MTECHTIPS-Oil prices rose on Tuesday morning in Asia amid a potential slowdown in U.S. production, but were capped by rising Russian output and expectations of a reduction in Saudi Arabian crude prices. Crude Oil WTI Futures for May delivery were trading at $63.20 a barrel in Asia at 11:00 PM ET (03:00 GMT), up 0.30%. Brent Oil Futures for June delivery, traded in London, were also up 0.30% at $67.84 per barrel. Top exporter Saudi Arabia is expected to cut prices for all crude grades it sells to Asia in May. Also putting pressure on oil markets is the rising supply. Top producer Russia pumped 10.97 million barrels per day (bpd) of crude in March, up from 10.95 million bpd in February, an 11 month high. One of the key price drivers going forward will be crude output from the U.S., which has increased by almost a quarter since mid-2016 to 10.43 million bpd, overtaking Saudi Arabia’s and inching close to Russia’s. By year-end the U.S. is expected to become the world’s top producer. But a dip in drilling activity for new production could imply that the relentless rise in U.S. production could be tapering off toward the middle of the year. Meanwhile, there is still strong compliance on production curbs from members of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, led by Russia, supporting oil prices

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