West TX Oil Below $57.50 on U.S. Shale Outlook

U.S. oil closed lower on Tuesday, pressured by the possibility that U.S. shale oil producers could increase drilling activity and by a stronger dollar.

U.S. drillers cut the number of rigs by just one last week, data showed on Friday, and Goldman Sachs said prices were at a level that would spur activity. The dollar could rally further, Morgan Stanley said, adding to a growing list of headwinds crude faces that include rising OPEC supply.

U.S. crude, also known as WTI, closed down $1.69, or 2.8 percent, at $58.03 a barrel. Meanwhile, Brent crude fell $1.80, or 2.8 percent, to $63.70 a barrel.

CNBC

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