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Oil Below $49 as Rise in U.S. Drilling Threatens OPEC's Efforts

  • U.S. drillers boost rig count to highest since September 2015
  • Kuwait oil minister says he supports OPEC deal extension
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Optimism Over OPEC Production Cuts Are Fading

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Oil settles at the lowest level since November as record U.S. crude inventories and a boost in drilling activity threaten OPEC’s efforts to reduce a global glut.

Futures slipped 0.2 percent in New York after fluctuating between slight gains and losses during the session. U.S. crude inventories probably rose by 3 million barrels last week, according to the median estimate in a Bloomberg survey before an Energy Information Administration report on Wednesday. Rigs targeting crude in the U.S. climbed to the highest since September 2015. Kuwait supports extending OPEC’s output deal beyond June, Kuwait’s official news agency Kuna reported, citing Oil Minister Issam Almarzooq.