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By Steve Scherer and Gavin Jones ROME (Reuters) - Italian Prime Minister Matteo Renzi announced on Monday that he would resign after suffering a resounding defeat in a referendum over constitutional reform, leaving the euro zone's third-largest economy in political limbo. Italy's largely ceremonial head of state, President Sergio Mattarella, told the prime minister to stay on until parliament had approved the 2017 budget. The referendum, intended to change rules to make Italy more governable, was opposed by right-wing and populist parties, including groups that want Italy to ditch the euro.
U.S. crude futures strengthened Monday before retreating in post-settlement trade as the market lost confidence OPEC cuts would be sufficient to reduce oversupply given increased U.S. drilling. U.S. West Texas Intermediate crude rose early in the day and began to pare gains in the late afternoon, settling at $51.79 a barrel, up 11 cents or 0.21 percent, before retreating to as low as $51.11 a barrel. Brent crude settled at $54.94 a barrel, up 48 cents - or 0.88 percent - before retreating to $54.22 a barrel.