Oil prices slipped on Thursday, affected by swelling U.S. crude stockpiles and record weekly U.S. production that is countering efforts by producer group OPEC to reduce supplies and support prices.
Brent crude oil futures stood at $73.19 per barrel, falling 17 cents or 0.2 percent from their last settlement. U.S. WTI crude futures traded down 11 cents or 0.2 percent, at $67.82 per barrel.
Prices were weighed down by a report from the U.S. Energy Information Administration on Wednesday indicating U.S. crude inventories surged by 6.2 million barrels to 435.96 million barrels in week to April 27, the highest level in 2018.
U.S. oil production also increased to a record of 10.62 million bpd, a surge more than a quarter since mid-2016. The U.S. now produces more crude oil than top exporter and Saudi Arabia, the biggest producer in the OPEC.
In the week to April 27, U.S. drillers added five oil rigs, according to Baker Hughes, bringing the total number to 825, the highest since March 2015. U.S. producers are being incentivised to bolster production as OPEC limits production and lifts prices.
The material has been provided by InstaForex Company – www.instaforex.com