Oil price falls by 1% as worries over U.S. output mount


By Sebastine Obasi With Agency Report

OIL fell around 1 percent yesterday as investors continued to unwind bets on higher prices after record cuts last week because of concerns that growing United States oil output could hamper an Organisation of Petroleum Exporting Countries, OPEC-led production cut deal.

Benchmark Brent crude futures were down 55 cents at $51.21 a barrel, while U.S. West Texas Intermediate (WTI) crude futures were trading 73 cents lower at $48.05 a barrel.

“Speculative investors have thrown in the towel it seems. We’ve got record selling in the week ending March 14 and the bleeding has not stopped yet,” said Carsten Fritsch, senior commodities analyst at Commerzbank in Frankfurt, Germany.

Oil futures have retreated in the past two weeks as a supply overhang driven by rising production from the United States overshadows a deal by OPEC and other producers…

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