Oil eases from 5-week high, U.S. output rise undermines rally
Crude oil edged back from a five-week high on Tuesday, as rising U.S. shale oil production weighed against support from tensions in the Middle East and production cuts in OPEC and other states.
Brent crude LCOc1, the international benchmark for oil, was down 8 cents from its previous close at $55.90 per barrel at 1225 GMT. Earlier in the session, Brent had climbed to its highest since March 7 at $56.16 a barrel.
U.S. West Texas Intermediate (WTI) CLc1 fell by 9 cents to $52.99 a barrel, after touching a five-week high of $53.23 a barrel.
Brent has risen in each of the previous six sessions, while WTI gained for the last five days.
“We are getting into the high risk part of this rally. It has been going on for a long time,” said Ric Spooner, chief market analyst at CMC Markets in Sydney.
“I wouldn’t be surprised to see a bit of book squaring going on now, ahead of the U.S. inventory data which is due on Thursday morning Asia time,” he said, also noting that current prices have attracted shale oil producers in the past.
Written by Libby George