* Libya declares force majeure on biggest oilfield
* Trump, top Democrats clash over border wall
* Russia outlines gradual cut as part of OPEC+ deal
* Coming Up: API weekly U.S. inventories at 2130 GMT
(Adds closing prices)
By Scott DiSavino
NEW YORK, Dec 11 (Reuters) - Oil futures edged higher on Tuesday
after paring most of their gains as stock markets turned negative on
worries about a possible U.S. government shutdown.
U.S. stock markets pulled back after President Donald Trump
threatened to shut down the federal government over funding for a wall
along the U.S.-Mexico border.
"It looks like the prospect of a U.S. government shutdown is
not good for any asset class. Equities reacted first, taking oil
prices down with it," said John Kilduff, a partner at Again
Capital Management in New York.
Prices rose over $1 a barrel earlier in the session after Libya's
National Oil Company (NOC) declared a force majeure on exports from
the country's biggest oilfield, which was seized last weekend by a
NOC said on Monday that the shutdown of the El Sharara oilfield
would result in a production loss of 315,000 barrels per day (bpd),
and an additional loss of 73,000 bpd at the El Feel oilfield.
After the strong start, Brent futures ended just 23 cents, or
0.4 percent, higher at $60.20 a barrel, while U.S. West Texas
Intermediate (WTI) crude rose 65 cents, or 1.3 percent, to $51.65.
Also adding pressure to the market, was Russia's
slower-than-expected planned cuts in production as part of an OPEC-led
deal agreed last week to curb output by a joint 1.2 million bpd from
January to shore up prices.
Russia said on Tuesday it planned to cut oil output by just 50,000
to 60,000 bpd in January, as it gradually builds to an agreed cut of
"Crude futures are roughly unchanged from just prior to the
OPEC agreement as the market is apparently expressing concerns over an
indicated slow start to Russia's output reductions next month,"
Jim Ritterbusch, president of Ritterbusch and Associates in Chicago,
said in a report.
Other analysts noted the reduction by the Organization of the
Petroleum Exporting Countries and allies, like Russia, may not be deep
enough to restore balance to the market especially after the U.S.
government confirmed its forecast that the United States would end
this year as the new top producing nation.
The Energy Information Administration (EIA) forecast U.S. output
would rise to a record 10.9 million bpd in 2018 and 12.1 million bpd
The market will get a peak at U.S. oil inventories this afternoon
when the American Petroleum Institute (API), an industry group,
releases a report at 4:30 p.m. EST. Analysts estimated crude stocks
declined 3 million barrels last week, according to a Reuters poll.
OPEC and Russia commit to cut oil output while the US ramps up
(Additional reporting by Amanda Cooper in London and Henning
Gloystein in Singapore; Editing by Marguerita Choy and Edmund Blair)
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