SINGAPORE (Dec 2): U.S. crude futures slipped below $69 a barrel on Tuesday after a rebound from five-year lows on signs that shale oil producers are starting to slow down output.
U.S. crude futures for January delivery slipped 12 cents to $68.88 a barrel by 0013 GMT. The front-month price hit a five-year low at $63.72 on Monday before rebounding to post a 4.3 percent gain at settlement.
Brent crude closed 3.4 percent higher on Monday at $72.54 a barrel after five straight sessions of losses.
U.S. oil producers have been racing at full-speed to drill new shale wells in recent years, even in the face of lower oil prices. But new data suggests that a much-anticipated slowdown in shale country may have finally arrived.
An aggressive strategy by Mideast Gulf producers to exploit the lowest oil prices in five years to defend market share is showing signs of bearing fruit as U.S. crude exports to Asia grind to halt.