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Futures lost as much as 1.5 percent in NY.

But soaring United States production is threatening to erode OPEC's efforts.

OPEC Secretary-General Mohammad Barkindo said on Monday the organization registered 133 % compliance with agreed output reduction targets in January.

Higher oil prices and rising output should feed increased investment in drilling and production, in turn boosting shale output more, he said.

"Oil prices are likely to slide for as long as the USA dollar appreciates, especially since fundamental data also point more toward falling prices", Commerzbank analysts said.

OPEC and other analysts have issued differing views from the IEA. On the New York Mercantile Exchange, West Texas Intermediate futures were trading down 0.7% at $61.27 a barrel. Total volume traded was about 6 percent below the 100-day average.

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Moreover, traders say onshore tanks in the region are also not booked out any more, in stark contrast to 2016/17: Oystein Berentsen, director for crude trading at Strong Petroleum, noted, "Most of the contango stocks afloat are sold.floating storage is no longer economical".

West Texas Intermediate (WTI) crude futures CLc1 rose $1.07, or 1.7 percent, to $62.75 a barrel by 1:56 p.m. EST (1856 GMT) after peaking at $63.09, its highest since February 7. Prices dropped 0.6% to $65.25 on Tuesday. But prices have since eased as global agencies predicted a rebound in U.S. crude output to record rates.

After about four years of surplus, supplies will come back into balance with demand in the second or third quarter, earlier than previously estimated, according to people familiar with OPEC's and its partners' deliberations.

Opec and producers outside the group led by Russian Federation are expected to draft a charter to formalise their alliance into a "supergroup" that would effectively have around 45 per cent of the world's total oil supply under control, UAE Energy Minister and current Opec President, Suhail Al Mazrouei told The National this month.

Also unclear is what effect, if any, OPEC will have on trading in the near term if it ratifies a strategy for long-term oil cooperation with non-OPEC oil producers, including Russian Federation - which al-Mazroui said will be discussed when they meet in June in Vienna.

Inventories at the Cushing, Oklahoma, site decreased by 2.644 million barrels this week.


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