OIL PRICE: ABOVE $55
U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $50.16 per barrel at 0648 GMT, down 26 cents, or 0.5 percent, from their last close. They fell below $50 per barrel earlier in the session.
Brent crude futures LCOc1 were down 22 cents, or 0.4 percent, at $55.78 a barrel.
The drops came over concerns that a third-quarter market rally that had lifted Brent to mid-2015 highs by late September had been overdone.
"Fundamentals may not yet be strong enough to support a continued rally, especially in growth-dependent commodities such as oil," said Ole Hansen, head of commodity strategy at Denmark's Saxo Bank in a quarterly outlook to investors.
Traders said that a so-called market rebalancing is now well underway, meaning that demand is no longer undershooting available supply.
The re-balancing is a result of strong consumption and also due to efforts led by the Organization of the Petroleum Exporting Countries (OPEC) to cut output by around 1.8 million barrels per day (bpd) in 2017 and the first quarter of next year.
"Compliance with the OPEC production cuts was over 100 percent in August (meaning members produced less than their quotas, on average) and U.S. oil inventories have been declining for several months now," said William O'Loughlin, investment analyst at Australia's Rivkin Securities.
But rising production in the United States, which is not participating in the deal to cut output, has prevented prices from climbing further.
U.S. production hit 9.55 million bpd in late September, its highest level since July 2017 and not far off its 9.61 million bpd record from June 2015.
"The number of active drilling rigs in the U.S. increased last week, highlighting the fact that higher oil prices will inevitably lead to more production from U.S. shale. These factors have kept WTI oil in a relatively tight trading-range for several months now," O'Loughlin wrote in a note to clients.
Drillers added six oil rigs looking for new production in the week to Sept. 29, bringing the total count up to 750, according to energy services firm Baker Hughes.
Due largely to rising U.S. output, Saxo Bank's Hansen said that "an extension of output curbs beyond March (2018) will be needed to ensure continued support for the oil market".
Traders said they would be watching for fuel inventory data from the U.S. Energy Information Administration (EIA), due to be published later on Wednesday, for further market guidance.
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LUKOIL - The plan is based on the conservative $50 per barrel oil price scenario. Sustainable hydrocarbon production growth is planned in the Upstream business segment along with the growth in the share of high-margin projects in the overall production. In the Downstream business segment, the focus is on the improvement of operating efficiency and selective investment projects targeted at the enhancement of product slate.
BP - BP will acquire on completion a 43% equity share in Lightsource for a total consideration of $200 million, paid over three years. The great majority of this investment will fund Lightsource’s worldwide growth pipeline. The company will be renamed Lightsource BP and BP will have two seats on the board of directors.
REUTERS - Brent crude was up 69 cents, or 1.1 percent, at $64.03 a barrel by 0743 GMT. It had settled down $1.35, or 2.1 percent, on Tuesday on a wave of profit-taking after news of a key North Sea pipeline shutdown helped send the global benchmark above $65 for the first time since mid-2015. U.S. West Texas Intermediate crude was up 45 cents, or 0.8 percent, at $57.59 a barrel.
ROSATOM - On December 10, 2017, the construction start ceremony took place at the Akkuyu NPP site under a limited construction licence issued by the Turkish Atomic Energy Agency (TAEK). Director General of the ROSATOM Alexey Likhachev, and First Deputy Minister of Energy and Mineral Resources of the Turkish Republic, Fatih Donmez, took part in the ceremony.