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Crude prices turn lower as U.S. output weighs

Investing.com -

Investing.com - U.S. oil moved lower on Friday, as news of a rise in U.S. production dampened demand as it was seen as curtailing recent efforts by the Organization of the Petroleum Exporting Countries to reduce global output.

U.S. crude futures for March delivery were down 0.69% at $53.40 a barrel, off Thursday's three-week highs of $54.06 a barrel.

On the ICE Futures Exchange in London, the March Brent contract tumbled 1.03% to trade at $55.66 a barrel.

The U.S. Energy Information Administration said on Wednesday that crude supplies rose by 2.9 million barrels last week to 488.3 million barrels.

The report sparked concerns over the levels of global oil supplies as OPEC and non-OPEC countries have made a strong start to lowering their oil output under the first such pact in more than a decade, energy ministers said over the weekend as producers look to reduce oversupply and support prices.

Ministers said that 1.5 million barrels a day of the roughly 1.8 million in cuts pledged by OPEC and non-OPEC countries have already been taken out of the market.

January 1 marked the official start of the deal agreed by OPEC and non-OPEC member countries such as Russia in November last year to reduce output by almost 1.8 million barrels per day.

If carried out as planned, the deal should reduce global supply by about 2%.

Market participants were also looking ahead to U.S. economic growth data, as well as reports on durable goods orders and consumer sentiment, due later in the day, for further indications on the strength of the economy as markets were still adapting to the arrival of U.S. President Donald Trump.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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