Oil is lower in Asia-Pac trade on Monday, WTI...>

OIL: Oil is lower in Asia-Pac trade on Monday, WTI last down $0.24 at $58.71.

Oil rose into the close on Friday to close at the highest levels in over 2

years. Prices were driven higher on Friday after reports that OPEC and Russia

had agreed in principle a framework to extend output cuts. WTI has fallen more

than Brent, last down $0.02 at $63.84 as OPEC output cuts would not affect US

output.

- Downside today comes as traders take some profit from the elevated levels, oil

is up almost 25% in the past 3 months. There is also some concern around EIA

reports that US production is at 9.66mln BPD, just shy of OPEC heavy weights

Saudi Arabia and Russia. The output climb is set to continue after Baker Hughes

Rig Count showed US drillers added 9 rigs to 747 last week, indicated output

increase could continue.

- MNI technical analysis sees support at $58.15 - High Nov 22 now support,

resistance is seen at $59.05 - 2017 High Nov 24. Bears need a close below $57.75

to ease bullish pressure and below $57.22 to shift initial focus back to the

21-DMA.