Oil Prices Inch Lower After API Reports Crude Draw, Gasoline Build

Oil Prices Inch Lower After API Reports Crude Draw, Gasoline Build

Oil Prices Inch Lower After API Reports Crude Draw, Gasoline Build

West Texas Intermediate crude for July delivery dropped as much as 84 cents to $65.52 a barrel on the New York Mercantile Exchange and traded at $66.22 as of 11:07 a.m. London time.

OPEC and Russian Federation decided together in 2016 to cut their supply in order to push prices up following a crash in prices induced by a global crude production glut.

Trump's latest tweet comes ahead of a gathering of OPEC members on June 22.

But the Paris-based IEA, echoing statements from oil producers as well as analyst comment in recent weeks, said there may be a change to the so-called Vienna agreement.

The outlook for the oil market in the second half of this year is uncertain, analysts say, and OPEC argues there are downside risks to demand.

"Saudi Arabia and Russian Federation have already started to lift production", he said.

USA crude oil production for yet another week for week ending June 01-the most recent data available-increased to 10.800 million bpd, according to the EIA.

"The prospect of easing supply curbs from OPEC-led producers continues to be reflected in oil's overall depressed price", said Lukman Otunuga, analyst at futures brokerage FXTM.

However, the API reported a surprise buildup in gasoline inventories for week ending June 8 in the amount of 2.33 million barrels.

Rising U.S. stocks partly reflect a surge in U.S. crude production, which has jumped by nearly a third in the last two years to a record 10.8 million barrels per day (bpd).

With output in Russian Federation rising back above 11 million bpd in June and Saudi production climbing to more than 10 million bpd, supplies from the top three producers are increasing.

"With rising production from United States shale adding to oil's woes and reviving oversupply concerns, further downside could be a possibility in the short to medium term", Otunuga said.

Official U.S. production and inventory data is due to be published on Wednesday by the Energy Information Administration.

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