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Oil Prices Fall Amid Output Concerns

Published 28/06/2018, 10:02
© Reuters.  Oil prices were lower on Thursday.
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Investing.com - Crude oil prices were lower on Thursday amid output concerns from the U.S. and OPEC.

Crude oil futures decreased 0.25% to $72.58 a barrel as of 5:01 AM ET (9:01 GMT). Meanwhile Brent crude futures, the benchmark for oil prices outside the U.S., inched down 0.13% to $77.36.

The price of oil was held down by rising output from Organization of the Petroleum Exporting Countries (OPEC). The organization agreed last week to raise output at a nominal increase of 1 million barrels a day (bpd). While OPEC members will add around 700,000 barrels a day, non-OPEC oil suppliers led by Russia would add the rest. 

Meanwhile unexpected supply cuts from Canada, Libya and Venezuela have also added to output concerns. Concern over Iranian imports also weighed on markets, as the U.S. urged all countries to stop Iranian crude imports from November, a senior State Department official said on Tuesday.

Oil prices had risen to three-and-a-half year highs on Wednesday after the U.S. Energy Information Administration said in its weekly report that crude oil inventories fell by 9.891 million barrels in the week ended June 22.

Market analysts' had expected a crude-stock draw of just 2.572 million barrels, while the American Petroleum Institute late Tuesday reported a decline of 9.228 million. Traders are looking ahead to fresh data on oil demand on Friday when the weekly Baker Hughes Oil Rig Count is released.

In other energy trading, gasoline futures increased 0.19% at $2.1050 a gallon, while heating oil fell 0.23% to $2.1745 a gallon. Natural gas futures were down 0.07% to $2.979 per million British thermal units.

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