Oil slips towards $62 in post-OPEC profit taking, U.S. stocks in view

Oil slipped towards $62 a barrel on Tuesday as investors took profits in the wake of OPEC and other producers’ pact to extend output cuts, although an expected drop in U.S. crude inventories lent support. 

Crude also slipped on concerns that the OPEC-led producer group’s Nov. 30 decision to prolong their supply-cutting deal through 2018 could bolster U.S. output, which climbed to nearly 9.5 million barrels per day in September. 

Brent crude , the global benchmark, was down 14 cents at $62.31 a barrel by 1218 GMT, declining for a second session. U.S. crude, known as West Texas Intermediate, was down 28 cents at $57.19.

The Organization of the Petroleum Exporting Countries, Russia and other non-OPEC producers last week extended the deal to cut output by 1.8 million barrels per day (bpd) until the end of 2018.

Analysts expect the reports from industry group American Petroleum Institute (API) and the government’s Energy Information Administration (EIA) to show crude stocks fell by 3.5 million barrels. 

The API report is out at 2130 GMT on Tuesday, followed by the government supply report on Wednesday.

However, rising U.S. oil production presents a headwind for OPEC’s efforts and data last week showed U.S. crude output rose to nearly 9.5 million bpd in September, approaching the high of 9.63 million bpd seen in 2015.