Oil dips as US production hits record highs

Oil prices fell in American trade to near two-week lows on US oversupply concerns, after inventories rose for the second week in a row, while output hit fresh record highs, as markets mpw expect OPEC to extend the output cut deal when it convenes later this month. 

As of 09:10 GMT, US West Texas Intermediate fell to $55.10 a barrel from the opening of $55.28, while Brent futures declined to $61.55 a barrel from the opening of $61.84. 

US crude rose 0.6% yesterday away from a two-week low hit earlier this week at $54.80, while Brent futures advanced 0.8%. 

The Energy Information Administration reported a rise of 1.9 million barrels in US crude inventories in the week ending November 10, contravening expectations of a 2.1M drop. 

US output rose 30 thousand bpd to a total of 9.65 million barrels, the highest on record. 

Otherwise, OPEC's countries are scheduled to meet on November 30 to discuss the market's movements and update the policy, with analysts widely expecting an extending agreement of the output cut deal until the end of 2018.