Oil prices tumble on United States inventories data

Data from the American Petroleum Institute showed on Tuesday that although crude inventories fell by 840,000 barrels in the week to April 14, they remained near record highs.

Currently, OPEC, the average daily production of which by the results of the first quarter amounted to 32.02 million barrels per day, actually balances supply and demand.

But U.S. stockpiles-and shale production-have cast doubt on whether the production cuts were enough.

U.S. West Texas Intermediate crude futures traded down 46 cents at $52.19 a barrel.

Brent crude futures were at $53.31 per barrel at 0108 GMT, up 38 cents, or 0.72 percent, from their last close.

TheNewsGuru.com reports that on December 10, 2016, OPEC won the backing of countries outside the oil cartel to join supply cuts for the first time since 2001, overcoming the final major obstacle for a global agreement to curb output.

At a time when the Organisation of Petroleum Exporting Countries (OPEC) and other producing nations have been trying to cut output, government drilling data showed U.S. shale production next month was set to rise to 5.19 million barrels per day (bpd).

Opec agreed to slash output by 1.2 million barrels a day and non-Opec members led by Russian Federation promised to cut 558,000 barrels a day. Official Opec data suggested that Opec cut oil output in March by more than pledged. Citi also warned any failure to extend the OPEC agreement would send oil prices "precipitously lower".

Stockpiles at Cushing, Oklahoma, the delivery point for WTI and the biggest U.S. oil-storage hub, fell by 570,000 barrels last week, according to a Bloomberg survey. Including Nigeria and Libya, the two members exempt from cuts, output by all 13 Opec members in March fell to 31.93 million bpd, down 150,000 bpd from February.

OPEC and Russian Federation will meet in late May to decide whether to extend the cutbacks until the end of this year.

Iran will probably be allowed to keep production unchanged if OPEC decides to extend its limits beyond the first half of the year, Kuwaiti Oil Minister Issam Almarzooq said in an interview in Abu Dhabi, the U.A.E. capital.

While more OPEC members are seen ready to extend output cuts, USA crude stockpiles dropped from a record. While US shale output could come "roaring back", supplies will start falling significantly as the curbs by OPEC and its partners continue, Citigroup Inc. said in a report.

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