Oil bounces but stuck near 2017 lows on supply overhang

Oil bounces but stuck near 2017 lows on supply overhang

Oil prices edged up from 2017 lows on June 16 but an ongoing supply excess put them on track for their fourth consecutive week of losses despite OPEC-led production cuts to support the crude market.

Brent crude futures were up 42 cents at $47.34 per barrel by 0755 GMT. West Texas Intermediate (WTI) crude futures were at $44.74 per barrel, up 28 cents.

"Oil production in the US was higher and oil tanker tracker data also suggests OPEC shipments remain strong," Reuters cited ANZ bank analytics as saying.

But prices for both benchmarks are still down by around 13% since late May, when producers led by the Organization of the Petroleum Exporting Countries (OPEC) extended a pledge to cut production by 1.8 million barrels per day by an extra nine months until the end of the first quarter of 2018.

Rising US oil output, particularly from shale drillers, is contributing to the ineffectiveness of the OPEC-led cuts.

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