Crude settles lower despite report of further OPEC output cuts

© Reuters. Crude recovers but ultimately settles lower© Reuters. Crude recovers but ultimately settles lower

Investing.com – Crude futures settled modestly lower on Tuesday, as fears concerning rising U.S. crude inventories eased, following a report of further OPEC cuts.

On the New York Mercantile Exchange for May delivery shed 3 cents to settle at $54.01 a barrel, while on London’s Intercontinental Exchange, lost 37 cents to settle at $55.56 a barrel.

Oil prices lost more than 1% in early trade, as investors feared the EIA’s weekly report on crude oil inventories due on Wednesday, would reveal that U.S. crude stockpiles rose faster than expected, after bucking the .

Crude futures recovered from session lows, after a Reuters survey found OPEC cut its oil output for a second month in February, following a record high compliance level by its members in January.

In February, supply from the 11 OPEC members with production targets under the deal has averaged 29.87 million bpd, down from a revised figure of 29.96 million bpd in January and 31.17 million bpd in December, according to the Reuters survey.

The continued effort by OPEC and other producers including Russia to tackle the supply glut in the industry came against fresh concerns that rising U.S. crude production may curtail the oil cartel and other producers’ efforts.

On Monday, a report from energy provider Genscape showed a build of more than 800,000 barrels of crude at the Cushing storage hub in Oklahoma.

Inventory data is due from industry group the American Petroleum Institute at 4:30 p.m. EST (2130 GMT) and the EIA report at 10:30 a.m. EST on Wednesday.

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