Oil price fall to $53.80 on US supply boost

International oil price fell to $53.80 for Brent crude overnight as investors weigh signs of rising US crude supply against output cuts from OPEC and other producing nations.

The fall is coming on the day the EIA raised the 2017 US crude forecast to 9 million from 8.78 million barrels in December.

According to a monthly Short-Term Energy Outlook by the agency, US crude output will hit 9.01m bbl/day in April 2017, the first y/y increase for any month since October 2015.

The 2018 US output is forecast at 9.30m barrels a day with projection the price of the WTI grade crude could average $52.50-$50.66 a barrel in 2017 while the more internationally trade Brent crude could end this year with an average price of $53.50 a barrel.