Russia's economic policy no longer depends on oil prices - Economic Development Minister

GETTYOil prices will influenced by supply from US shale

He said that thanks to increasing efficiency, US shale oil producers would likely deliver an additional 1.5 million barrels of crude a day to the market in 2018.

Oil prices extended losses on Friday to hit a three-week low, after rising US production and President Trump's withdrawal from the Paris Climate Accord overrode the fall in crude inventories there.

Brent crude futures settled at $49.95 per barrel, down 68 cents or 1.3 percent, while U.S. West Texas Intermediate crude futures fell 70 cents to settle at $47.66 per barrel or 1.5 percent.

A survey by Reuters found that oil output from the Organization of the Petroleum Exporting Countries (OPEC) increased last month.

On Wednesday, global benchmark Brent crude futures were down 52 cents at $51.32 a barrel by 0838 GMT.

US light crude traded at $48.31, down $1.35, or 2.7 percent.

USA crude futures settled up 4 cents at $48.36 a barrel, while Brent ended down 13 cents at $50.63. It estimated that large operators such as Anadarko Petroleum Corp. and Marathon Oil Corp. are expected to increase output by 400,000 barrels a day, with smaller independent producers projected to add a further 100,000 barrels. "Why wouldn't they ramp up production when producers like the USA have an open invite to do as they please?"

However, US crude production rose to 9.34mn bpd last week, up almost 500,000 bpd from a year ago.

"Doubts remain as to the likelihood that inventories will fall as Opec continues to constrain output", ANZ said in a research note.

Nigeria and Libya had earlier been exempted from an OPEC and non-OPEC producing members' agreement to extend the crude oil production cut by another nine months to allow further rebalancing of the market.

Last week OPEC and some non-OPEC producers extended a deal to cut 1.8 million barrels per day in supply until March 2018.

Crude oil prices have been dampened by rising U.S. output despite Opec production cuts.

Traders said that prices had received support from a tightening physical crude market. "I don't think this is going to be the end of it, I see the draws increasing from here", Scott Shelton, energy specialist at ICAP in Durham, North Carolina said.

Russia, which has cut production by 300,000 bpd under the deal, could increase production next year to as much as 11.07 million bpd, the country's deputy energy minister told Reuters.

"A number of large-scale oil producers, that do not take part in these agreements, use such conditions to strengthen their market positions, and that leads rather to new imbalance than to the sustainable development", said Rosneft Chief Executive Igor Sechin, at an energy conference in St. Petersburg over the weekend.

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