| SINGAPORE, March 28
SINGAPORE, March 28 Oil prices edged up on
Tuesday on a weaker dollar, but crude continued to be weighed
down by surging U.S. production and uncertainty over whether an
OPEC-led supply cut is big enough to rebalance the market.
Prices for front-month Brent crude futures, the
international benchmark for oil, had risen 15 cents from their
last close to $50.90 per barrel by 0120 GMT.
In the United States, West Texas Intermediate (WTI) crude
futures were up 19 cents at $47.92 a barrel.
Traders said that crude futures were receiving some support
from a weak dollar.
The greenback has lost 2.9 percent in value against a basket
of other leading currencies since its March peak on
doubts over U.S. President Donald Trump's policy making
When the dollar weakens, many futures traders pull out money
from foreign exchange markets and put it into commodities
futures like gold or crude futures instead.
A weaker dollar also makes oil imports cheaper for countries
using other currencies, potentially spurring demand.
While there was some support for crude from financial
markets, physical fundamentals remained weak, especially due to
soaring U.S. output that is undermining efforts lead by
Organization of the Petroleum Exporting Countries (OPEC) to cut
production in order to rein in a global fuel supply overhang and
prop up prices.
"We now forecast U.S. crude oil production to reach a
multi-decade high by December, within sights of the all-time
high reached in 1970," Barclays bank said in a note to clients.
U.S. crude oil production has already risen 8.3 percent
since mid-2016 to 9.13 million barrels per day (bpd). Output
briefly reached 9.7 million bpd in April 2015, it highest since
Soaring output and brimming inventories have made U.S. WTI
crude much cheaper than its international peer, Brent, which is
receiving support above $50 per barrel by the OPEC-led
As a result, record amounts of U.S. crude oil have found
their way to Asia and other destinations this year, and more is
expected to be shipped out as traders take advantage of
arbitrage opportunities by sending out excess U.S. crude into
regions where it can find buyers.
(Reporting by Henning Gloystein; Editing by Joseph Radford)