Crude oil sells above $58 on Tuesday


crude oil

Crude oil rose on Tuesday after a forecast that U.S. shale oil output would record its first monthly decline in more than four years and on tension in Yemen, where top oil exporter Saudi Arabia is embroiled in a civil war, VON reports.

Brent crude for May LCOc1 was up 50 cents at $58.43 a barrel by 0815 GMT, while U.S. crude CLc1 was up 60 cents at $52.51.

 The U.S. Energy Information Administration (EIA) said on Monday it expected U.S. shale production to fall by 45,000 barrels per day (bpd) to 4.98 million bpd in May.

Shale production has helped boost U.S. oil output by more than 4 million bpd since 2010 and has been a key factor behind the collapse in world oil prices over the last year.

But much lower oil prices, down from above $115 a barrel last June, have now begun to hit exploration.

Oil also found support from tension in the Middle East, where fighting is continuing in Syria, Iraq and Yemen.

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