06 March 2019, Singapore/London — Oil prices eased on Wednesday as bullish output forecasts by two big U.S. producers and a build in weekly U.S. crude stockpiles outweighed OPEC-led production cuts.
Brent crude futures were at $65.74 per barrel at 1416 GMT, down 12 cents from their last settlement. U.S. West Texas Intermediate (WTI) crude oil futures were down 45 cents at $56.11 per barrel.
“Crude oil futures continue to demonstrate whippy trades as markets balance between OPEC-led cuts and the effects of rising U.S. production levels,” said Benjamin Lu, commodities analyst at Singapore-based brokerage firm Phillip Futures.
Increasingly event-driven trading was adding to market volatility, he said.
Chevron Corp and Exxon Mobil Corp released rival Permian Basin projections on Tuesday pointing to increased shale oil production.
If realised, the increases would cement the pair as the dominant players in the West Texas and New Mexico field, with one-third of Permian production potentially under their control within five years.