Oil prices fall 1 pct as rising U.S. supplies offset OPEC cuts

Tue Feb 28, 2017 12:39pm EST
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By Jessica Resnick-Ault

NEW YORK (Reuters) - Oil prices fell more than 1 pct on Tuesday but continued to trade in a tight range, as concerns about rising U.S. crude inventories ahead of data overshadowed OPEC production cuts.

U.S. crude stockpiles have been rising for seven consecutive weeks, and forecasts of an eighth build of 2.9 million barrels last week fueled worries that demand growth may not be sufficient to soak up the global crude oil glut.[EIA/S]

Inventory data is due from industry group the American Petroleum Institute at 4:30 p.m. EST and the government's report at 10:30 a.m. EST on Wednesday.

By 12:09 p.m. EST, U.S. West Texas Intermediate crude futures were down 77 cents at $53.28 a barrel and Brent crude fell 64 cents to $55.29 a barrel.

For the month, WTI was on track for 0.8 percent increase and Brent set for 0.8 percent fall.

Gasoline futures prices also weighed down the petroleum complex.

U.S. gasoline futures fell 3.4 percent to $1.4805 a gallon, on track for 3.2 percent decrease in February.

Prices were under pressure on the final trading day for the March contract, the final month in which gasoline that complies with environmental standards for winter-grade fuel is offered. Abundant supplies of the fuel, which has different additives from those required in the summer, have weighed on prices.   Continued...

Stacked rigs are seen along with other idled oil drilling equipment at a depot in Dickinson, North Dakota June 26, 2015.  REUTERS/Andrew Cullen/File Photo