Oil under pressure on signs of OPEC non-compliance

Oil prices remains under pressure in Asia on reports of OPEC members not adhering to rules of the output cut deal and increase in US oil supplies.

At the time of writing, the West Texas Intermediate (WTI) oil was trading at the three-week low of $51.90/barrel. Meanwhile, Brent oil was trading just under $55/barrel.

It is being reported across the wires that Iraq, the number 2 producer in OPEC, has not cut supplies to three buyers in Asia and Europe. Furthermore, Nigeria reported a 30% rise in its supplies in December. That added to the bearish pressure around oil prices.

The focus today is on the US American Petroleum Institute data that would offer more insights into how US shale producers are responding to higher prices.