Oil dips after boost from supply deficit hopes

Friday,   14-Dec-2018   04:28 PM (IST)

Oil prices headed lower on Friday as investors took profit after a nearly 3% surge in the prior session. Thursday’s boost was thanks to updated forecasts from the International Energy Agency (IEA) which said it expects a supply deficit in the second quarter of 2019 if OPEC and its allies move forward with plans to reduce output starting in January.U.S. crude oil futures lost 20 cents, or 0.38%, to $52.38, while Brent oil traded down 29 cents, or 0.47%, to $61.16.Concerns of oversupply will remain in the spotlight on Friday as investors keep an eye on a measure of future output stateside with Baker Hughes’ weekly data out at 1:00 PM (18:00 GMT).The U.S. rig count dropped by 10 to 877 last week while the Energy Information Administration reported Wednesday that U.S. oil production had fallen from a record high of 11.7 million barrels per day to 11.6 million, easing concerns over escalating production.However, in its monthly report released Thursday, the IEA warned however that U.S. shale's influence over global crude markets would only get stronger.