Oil drops 1.1%, hits 10-day low

• Oil  hits 10-day low in Asia.
• Rising US oil output could counter OPEC output cuts.

Oil prices on both sides of the Atlantic fell more than 1 percent, reportedly due to fears that rising US shale output could offset the OPEC-led deal to clear a supply glut.

WTI oil hit 10-day low of $62.84 a few minutes go and was last seen trading at $63.10/barrel. Meanwhile, Brent also hit a 10-day low of $68.31 and was last seen trading at $68.50/barrel.

In a monthly report released yesterday, the Organization of the Petroleum Exporting Countries (OPEC) said rival producers are likely to boost supply by 1.15 million barrels per day (bpd) this year, up from 990,000 bpd expected previously.

OPEC's upward revision of rivals' supply forecast came a day after the Energy Information Administration (EIA) comments that the shale oil output is likely to rise by 1.8 million barrels per day (bpd) over the next year.

Ahead in the day, oil could remain on the back foot, dragging energy stocks lower across the board. In the US session, Baker Hughes weekly inventory report could move oil prices.