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Oil slips to $71, hit by talk of higher OPEC+ production


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UPDATE 3-Oil slips to $71, hit by talk of higher OPEC+ production


* U.S. crude inventories seen higher for fourth week

* Russia says OPEC, allies may boost oil output

* OPEC, allies to meet in June; focus on production curbs (Updates prices)

By Alex Lawler

LONDON, April 16 (Reuters) - Brent oil slipped to around $71a barrel on Tuesday, pressured by expectations of higher U.S.inventories and concern about Russia's willingness to stick withOPEC-led supply cuts.

Analysts on average expect U.S. crude stockpiles to haverisen by 1.9 million barrels last week, the fourth straightincrease. The first of this week's stockpile reports is due at2030 GMT from the American Petroleum Institute. EIA/S

"We have already seen these inventories going higher in thelast week's print," said Naeem Aslam, chief market analyst at TFGlobal Markets in London.

"The rising inventory data has raised many questions forinvestors - no one wants to see the oil glut again."

Brent crude LCOc1 , the global benchmark, was down 4 centsat $71.14 a barrel at 1104 GMT. U.S. West Texas Intermediate CLc1 (WTI) crude gained 6 cents to $63.46.

While OPEC-led supply cuts have boosted Brent by more than30 percent this year, gains have been limited by worries thatslowing economic growth could weaken demand for fuel.

Oil also fell on Monday after comments from Russia raisedconcern the OPEC-led supply-cutting pact may not be renewed.Russia and the producer group may decide to boost output tofight for market share with the United States, TASS news agencyсited Finance Minister Anton Siluanov as saying. urn:newsml:reuters.com:*:nL5N21V0C8

The Organization of the Petroleum Exporting Countries andother producers including Russia, an alliance known as OPEC+,have been cutting output since Jan. 1. They decide in Junewhether to continue the arrangement.

"There is a growing concern that Russia will not agree onextending production cuts and we could see them officiallyabandon it in the coming months," said Edward Moya, seniormarket analyst at OANDA.

Russian officials sent mixed signals over renewal of thedeal with OPEC last time it was being renegotiated in December,before finally agreeing to remain on board.

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(Editing by Dale Hudson and David Evans) ((alex.lawler@thomsonreuters.com; +44 207 542 4087; ReutersMessaging: alex.lawler.reuters.com@reuters.net))






This article appears in: World Markets , Stocks , Oil , Commodities




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