London — Oil hovered below a three-year high near $70 a barrel on Monday on signs that production cuts by Opec and Russia are tightening supplies, but analysts warned of "red flags" due to surging US production. International benchmark Brent crude futures were trading 18c lower at $69.69 by 10.04am GMT, having risen above $70 earlier in the session. US West Texas Intermediate crude futures were at $64.22, down 8c from their last settlement. Trading was relatively slow due to a national holiday in the US. A production-cutting pact between Opec, Russia and other producers has given strong tailwind to oil prices, with both benchmarks last week hitting levels not seen since December 2014. Growing signs of a tightening market after a three-year rout have bolstered confidence among traders and analysts that prices can be sustained near current levels. Bank of America Merrill Lynch on Monday raised its 2018 Brent price forecast to $64 a barrel from $56, forecasting a deficit of 430,000 bar...
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