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Oil prices slip as U.S. crude output rises to highest since 2015

Published 24/08/2017, 08:10
© Reuters.  Oil nudges lower as U.S. output rises
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Investing.com - Oil prices edged lower on Thursday, after U.S. government data revealed a weekly climb in domestic production to the highest level in over two years.

An eighth consecutive weekly drop in U.S. crude supplies helped limit losses.

The U.S. West Texas Intermediate crude October contract was at $48.30 a barrel by 3:10AM ET (0710GMT), down 11 cents, or around 0.2%.

Elsewhere, Brent oil for October delivery on the ICE Futures Exchange in London dipped 8 cents to $52.49 a barrel.

Oil prices ended more than 1% higher on Wednesday, as investors digested weekly supply data from the U.S. Energy Information Administration.

Crude oil inventories fell by 3.3 million barrels, according to the EIA figures, the eighth weekly decline in a row.

Gasoline stockpiles were down 1.2 million barrels for the week, while distillate stockpiles remained unchanged, according to the EIA.

However, domestic crude production edged up by 26,000 barrels a day to 9.528 million last week, the highest level since July 2015.

Oil prices have been under pressure in recent weeks as concern over rising U.S. shale output canceled out production cuts by OPEC and non-OPEC members.

OPEC and 10 producers outside the cartel, including Russia, agreed since the start of the year to slash 1.8 million barrels per day in supply until March 2018 in order to reduce a global supply glut and rebalance the market.

So far, the deal has had little impact on global inventory levels due to rising supply from producers not participating in the accord, such as Libya and Nigeria, as well as a relentless increase in U.S. shale output.

Elsewhere on Nymex, gasoline futures for September inched up 1.0 cent, or roughly 0.7%, to $1.634 a gallon, while September heating oil added 0.5 cents, or 0.4%, to $1.629 a gallon.

Natural gas futures for September delivery held steady at $2.925 per million British thermal units, as traders looked ahead to weekly storage data due later in the global day.

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