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Oil prices fall on relentless rise in US crude output

Oil rates fell on Tuesday, extending losses from the previous session, as the inexorable occur in U.S. crude output weighed on markets.

U.S. West Texas Intermediate (WTI) crass futures were at $61.25 a barrel at 0414 GMT, down 11 cents, or 0.2 percent, from their untimely close.

Brent crude futures were at $64.85 per barrel, down 10 cents, or 0.2 percent.

Both unprocessed benchmarks dropped by around 1 percent in their Monday sessions.

“Oil payments fell on the back of concerns that surging U.S. production … could press inventories in the U.S. higher,” ANZ bank said on Tuesday.

U.S. crude oil production rose past 10 million barrels per day (bpd) in late 2017, overtaking output by top exporter Saudi Arabia.

U.S. preparation is expected to rise above 11 million bpd by late 2018, entrancing the top spot from Russia, according to the International Energy Agency (IEA).

The be elevated U.S. output comes largely on the back of onshore shale oil production.

U.S. indelicate production from major shale formations is expected to rise by 131,000 bpd in April from the preceding month to a record 6.95 million bpd, the U.S. Energy Information Administration (EIA) alleged in a monthly report on Monday.

“Oil prices moved lower … after (the) Spirit Information Administration published a report that crude production from seven serious U.S. shale plays is expected to see a climb,” said Stephen Innes, grey matter of trading for Asia Pacific at futures brokerage OANDA in Singapore.

That trust increase would top the 105,000 bpd climb in March from the previous month, to what was then presumed to be a record high of 6.82 million bpd, the EIA said.

The EIA is due to publish its latest weekly U.S. Canada display data on Wednesday.

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