Oil Rally Halts as More Output Seen; US Stockpile Data Awaited By Investing.com – Investing.com

Oil Rally Halts as More Output Seen; US Stockpile Data Awaited By Investing.com – Investing.com

© Reuters.

By Barani Krishnan

Investing.com - Oil prices aren’t ready to collapse yet in the same fashion they rose. Yet, new highs aren’t happening in a market seeing steady drops or slower advances each day, especially after a forecast Tuesday that world output may actually rise in the near-term — something few expected.

The Paris-based International Energy Agency, or IEA, said global production increased by 1.4 million barrels a day last month, and will add as much again over November and December as the U.S. Gulf of Mexico restores supplies halted by the end-August Hurricane Ida. 

American shale drillers also finally seem to be taking advantage of the higher crude prices to bolster drilling. Those extra barrels are coming onstream as the OPEC+ alliance continues to revive exports it halted during the pandemic, the agency said. Separately, the number of rigs actively drilling for oil in the United States rose by 60 — from a low of 394 to 454 — over the past 11 weeks.

, the U.S. crude benchmark, settled down 12 cents, or 0.2%, at $80.76 per barrel. WTI had lost 4% over the past three weeks after gaining a net 30% over the previous