Oil prices fall

London

Oil prices fell on Tuesday as lower production by OPEC and other exporters was undermined by growing evidence of a revival in U.S. shale production and sluggish demand. Benchmark Brent crude LCOc1 was down 70 cents at $55.02 a barrel by 1430 GMT. On Monday, the Brent futures contract closed down $1.09 a barrel. U.S. crude CLc1 was 75 cents lower at $52.26 after closing down 82 cents on Monday. Prices have been supported over the last two months by efforts by the Organization of the Petroleum Exporting Countries and other exporters to cut output by almost 1.8 million barrels per day (bpd) in the first half of 2017. But while OPEC and Russia have together cut at least 1.1 million bpd so far, rising U.S. production, as well as signs of slowing demand growth, threaten to undermine these efforts. “The general perception is that OPEC is cutting production, which is supporting prices, but high stock levels, rising rig counts and growing U.S. production are capping gains,”.—Reuters

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