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Crude Oil Prices Drift Lower Again

Crude oil prices are drifting lower Monday morning, amid concerns about possible drop in energy demand due to slowing global economy.

Despite OPEC-led production cuts and U.S. sanctions on Venezuela's oil industry, concerns about excess supply linger due to higher output in the U.S.

West Texas Intermediate Crude oil futures for March are down $0.45, or 0.85%, at 52.27 a barrel.

On Friday, WTI oil futures for March ended up $0.08, or 0.2%, at $52.72 a barrel.

Brent Crude futures for March are down $0.10, or 0.16%, at $62.00 a barrel.

Data released by the Energy Information Administration last Wednesday, showed a 1.26 million barrels increase in U.S. stockpiles in the week ended February 2. The increase, however, was less than what was expected.

Average weekly U.S. crude oil production remained at a record 11.9 million barrels per day it reached in late 2018.

Baker Hughes reported on Friday that U.S. oil rigs count increased by 7 to 854 last week, after falling by 15 a week earlier.

Worries about global growth have increased after the European Union recently lowered its growth forecasts for the Euro area for the current year, as well as the next one.

The next round of high level trade talks between the U.S. and China begin later this week. U.S. Treasury Secretary Steven Mnuchin and other U.S. officials are scheduled to travel to Beijing to continue trade negotiations. Last week, U.S. President Trump had ruled out meeting the Chinese President Xi Jinping anytime before the expiry of March 1 deadline.

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