Oil slips nearly 1 percent on concerns over rising U.S. output

Oil prices fell about 1 % on Friday as worries about rising U.S. supplies outweighed OPEC pledges to boost compliance with output curbs.

But crude prices were on track for a weekly rise as traders have begun to pull out barrels from pricey storage, with physical markets showing signs of tightening.U.S. drillers added oil rigs for a sixth consecutive week, extending a nine-month recovery, energy services firm Baker Hughes Inc said.

 

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Brent crude oil settled down 59 cents, or 1.04 %, at $55.99 a barrel, while U.S. West Texas Intermediate ended the session 46 cents lower at $53.99 a barrel.

“The oil market remains focussed on the global rebalancing act, with attention centred on OPEC compliance and U.S. production growth,” said Michael Tran, director of energy strategy at RBC Capital Markets in New York. “The push-pull situation between stock draws relative to price-elastic U.S. shale remains paramount to the rebalance.”

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