Oil heads for two-month trough

Oil prices deepened their losses in American trade on track for fresh two-month lows, after the International Energy Agency warned from global oversupply, with US output hitting record highs. 

As of 13:14 GMT, US West Texas Intermediate fell to $58.85 a barrel from the opening of $59.35, with an intraday high at $59.72, and a low at $58.82. 

Brent slipped to $62.35 a barrel from the opening of $62.78, after marking a 0.2% profit yesterday, and a December 7 low on Friday at $61.75. 

OPEC said in its latest monthly report that the oil market won't be balanced again before the end of the year due to increased output from the US and other producers, expecting global supplies to increase 1.4 million bpd this year, up from 870 thousand bpd in November forecasts. 

The IEA said on Tuesday that OPEC managed to achieve their targets in erasing global oversupply, however their efforts could be subverted due to increased supplies from the US and other producers. 

Oil prices lost 9.5% last week, the largest weekly decline since December 2014 on US output concerns. 

US production surged to 10.25 million bpd in the week ending February 2, a record high, passing Saudi Arabia to make the US the world's second largest crude producer. 

US Energy Information Administration raised output projections for 2018 to 10.59 million bpd, up 320 thousand bpd from last week's forecasts. 

Baker Hughes reported a rise of 26 rigs in the US oil rig count last Friday, the third weekly increase in a row and the largest since January 2017. 

Total US rigs have now risen to 791 rigs, the highest since April 2015.