Crude Halts Decline as Demand Seen Burning Through Shale Output
- OPEC compliance with output caps reached a record level
- U.S. government raises its domestic shale forecast -- again
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Crude edged higher after the worst weekly decline in two years as OPEC shrugged off the threat that U.S. shale drillers will swamp the market with excess supplies.
Futures in New York advanced, breaking a six-session string of losses. Strong demand for crude coupled with restrained output from OPEC and allied suppliers will erase any remaining glut this year, United Arab Emirates Energy Minister Suhail Al Mazrouei said. The price gain was muted as the U.S. government lifted its shale oil supply forecast and weakness in gasoline and diesel markets bled over.