MTECHTIPS;- Oil Prices Head for Sharp Monthly Decline on Oversupply Worries

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MTECHTIPS;- Oil Prices Head for Sharp Monthly Decline on Oversupply Worries

MTECHTIPS-Oil prices traded lower on Tuesday, heading for a sharp monthly decline, as concerns over escalating supply returned to the forefront. New York-traded West Texas Intermediate crude futures slumped $1.52, or 2.17%, to $68.61 a barrel by 10:41 AM ET (14:41 GMT). Meanwhile, Brent crude futures, the benchmark for oil prices outside the U.S., traded down $1.08, or 1.43%, to $74.47. U.S. crude was on track for monthly losses of 7.4%, while Brent declined 6.1% in July. A Reuters survey showed that OPEC hiked production by 70,000 barrels per day to 32.64 million bpd, a 2018 high, Reuters reported. Further supply increases could offset production outages and pressure prices, it added. On June 22-23, OPEC, Russia and other non-members agreed to return to 100% compliance with oil output cuts that began in January 2017, after months of underproduction elsewhere had pushed adherence above 160%. Even though output continued to decline in Iran, Libya and Venezuela, the survey suggested that compliance had only fallen to 111% in July, suggesting more room for increasing production from the likes of Saudi Arabia or OPEC’s non-member ally Russia