Brent crude pares losses, but specter of output boost lingers | Reuters

International crude benchmark Brent futures LCOc1 were up 68 cents at $75.98 a barrel by 1405 GMT, while U.S. crude futures CLc1 dropped 65 cents to $67.23.

Brent now commands its largest premium over U.S. futures in more than three years, meaning U.S. exports are rapidly becoming far more competitive globally than those from northern Europe, Russia or parts of the Middle East.

“Rising anticipation of a gradual exit from the OPEC-led output-cut agreement has continued to weigh on oil prices,” said Abhishek Kumar, senior analyst at Interfax Energy Global Gas Analytics, adding that the devil will be in the detail when the producer group meets in June.

“Market participants will closely watch how quickly any such measure is implemented and whether it will go beyond just balancing the output drop from Venezuela.”

Concerns that Saudi Arabia and Russia could boost output have exerted downward pressures on oil prices, along with rising production in the United States.

The Brent price has fallen nearly 7 percent since hitting a 2014 high above $80 on May 22.

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Brent crude pares losses, but specter of output boost lingers | Reuters.