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Oil prices slump as U.S. crude output rises

Published 13/07/2017, 08:45
© Reuters.  Oil prices slump
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Investing.com - Oil prices were lower in European trade on Thursday, as concern over rising production in the U.S. and elsewhere dampened sentiment.

The U.S. West Texas Intermediate crude August contract was at $45.30 a barrel by 3:45AM ET (0745GMT), down 18 cents, or around 0.4%.

Elsewhere, Brent oil for September delivery on the ICE Futures Exchange in London slipped 19 cents to $47.55 a barrel.

Oil ended higher on Wednesday after U.S. government data confirmed a sharp decline in domestic crude supplies for a second week in a row. Prices, however, ended off the best levels of the session, as rising production in the U.S. underlined concern over a supply glut.

Data from the U.S. Energy Information Administration showed that crude oil inventories fell by 7.6 million barrels in the week ended July 7. There was additional support stemming from a decline in U.S. gasoline inventories.

But total domestic crude production edged up by 59,000 barrels a day to 9.397 million barrels a day last week, according to the EIA figures.

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.

In May, OPEC and some non-OPEC producers extended a deal to cut 1.8 million barrels per day in supply until March 2018.

However, data showed that the cartel's oil production actually rose in June, edging up by 393,000 barrels a day to 32.61 million, led by increases in Libya and Nigeria.

Elsewhere on Nymex, gasoline futures for August shed 0.9 cents to $1.507 a gallon, while August heating oil dipped 0.6 cents to $1.467 a gallon.

Natural gas futures for August delivery tacked on 2.5 cents to $3.010 per million British thermal units, as traders looked ahead to weekly storage data due later in the global day.

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