World oil prices up

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The surprise data hit prices of both crude and products in a market that was tilted bullish and vulnerable to a selloff, analysts said.

WTI Crude Oil (Light Sweet) price at NYMEХ Stock Exchange down by 1.32% to $57.59 per barrel. It marks the lowest close for the benchmark since November 16 and the biggest one-day decline for WTI since October 6.

The price for January Futures Brent oil grew by 0,11% to stand at $62,52 per barrel on the London ICE Futures Exchange. Unprecedented flooding from the Category 4 storm that slammed into the state's coast last week, sending gasoline prices surging as oil refineries shut, may also set a record for rainfall in the contiguous US, the weather service said Tuesday. "Gasoline futures have clearly broken technical support levels and ULSD (diesel) futures are testing them", said David Thompson, executive vice-president at Powerhouse, an energy-specialized commodities broker in Washington.

New York's NYMEХ (New York Merchantile Exchange) is a USA futures market founded in 1882.

USA output rose in September to 9.5 million barrels per day (bpd), the highest monthly output since 2015, the EIA said last week. That increase may undermine efforts by the Organization of the Petroleum Exporting Countries, Russia and other producers to cut supply.

Brent Crude
Daily February Brent Crude

Meanwhile, analysts said investors tended to take profit after oil prices posted solid gains in the previous session.

Barrel is the unit of measurement of oil volume.

One factor that could undermine OPEC's and Russia's effort to cut supplies and prop up prices is United States oil production, which has risen by 15% since mid-2016 to 9.68 million barrels per day, close to levels of top producers Russian Federation and Saudi Arabia.

"While the deal leaves room for an earlier exit than currently scheduled, we now reflect this resolve in our supply forecast, with full compliance for longer and a more modest exit rate", Goldman Sachs analysts said in a note.

"With U.S. production, we're still in the throes of seeing that go ever higher".

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