Crude Oil Prices Slide over Increase Supply Outlook
crude oil prices were down on Thursday over a potential agreement to increase supply and decline in United States gasoline stocks.
Also, there are indications that both Saudi and United Arab Emirates, UAE, are discussing to find mid-point to agree on oil quotas plan for August.
International benchmark Brent crude was trading at $73.93 per barrel, dropped by 0.83% after closing Wednesday at $74.76 a barrel.
American benchmark West Texas Intermediate (WTI) was trading at $72.20 a barrel at the same time with around 1% decrease after ending the previous session at $73.13 per barrel.
A potential agreement between the Organization of the Petroleum Exporting Countries and allies (OPEC+) and its allies led a fall in prices.
Also, data from China showed a 3% drop in crude imports in the country in the first half of the year on Wednesday, showing the first dip since 2013.
The negative data implied a demand decline in China, the world’s largest oil importer, exerting downward price pressure.
US commercial crude oil inventories decreased by 1.8% for the week ending July 9, according to the latest data released by the Energy Information Administration (EIA).
Inventories fell by 7.9 million barrels to 437.6 million barrels, higher than the market expectation of a 4.3 million barrel draw.
A new industry report shows that OPEC crude oil production increased by 590,000 barrels per day month-over-month to an average of 26 million barrels per day, while the share of OPEC crude out of total global production rose to 27.6% in June, marking a 0.3% decrease compared to the previous month.
Crude oil output increased mainly in Saudi Arabia while production decreased primarily in Iraq.
Non-OPEC liquids production in June increased by 520,000 barrels per day compared with the previous month to an average of 68.46 million barrels per day.
Crude Oil Prices Slide over Increase Supply Outlook
