Oil Extends through six day gain as U.S. oil Output take a slight dip

Oil closed lower

Oil Futures ended the session with modest gains, extending crude’s rally to a sixth straight session after a weekly decline in the U.S. Crude Production temporarily slowed easing concerns about making the oversupply worse.

Crude prices hit a 10-month low last week but have bounced by more than 5 percent, prolonging their bull run to its longest so far since. Analyst are uncertain whether the drop in oil prices has been completely evaded in the oil market.

In recent weeks, funds have been unloading long speculative positions, reducing bets on higher prices, however, that the rebound in prices are reflected technical buying rather than a change in fundamentals.

U.S. crude production dropped by 100,000 barrels per day to 9.3 million barrels per day last week, the steepest weekly fall since July 2016. But analysts stated that the decline was due to temporary factors, which includes production shut as a precaution in the Gulf of Mexico due to a tropical Storm Cindy, along with maintenance in Alaska.

Global oil supplies could still meet the demand despite output cut of 1.8 million barrels by the Organization of the Petroleum Countries and other producers since January.

U.S. Crude futures settled up by 19 cents at $44.93 per barrel after hitting a two-week high of $45.45 in late-morning trading. The market retreated from its session peaks after Societe Generale became the third investment bank to cut its outlook for oil price in the previous week.