Investing.com - Crude oil futures fell sharply on Wednesday, amid growing speculation the Organization of Petroleum Exporting Counties will keep production levels unchanged when it meets on Friday, despite ongoing concerns over ample global supplies.
On the ICE Futures Exchange in London, Brent oil for July delivery sank $1.50, or 2.29%, to trade at $63.99 a barrel during European morning hours. London-traded Brent prices tacked on 61 cents, or 0.94%, on Tuesday to end at $65.49.
Oil's losses accelerated after a senior Gulf OPEC delegate said that there is "consensus" among Gulf OPEC countries and others, to keep the output levels unchanged above 30 million barrels per day.
Elsewhere, on the New York Mercantile Exchange, crude oil for July delivery plunged $1.35, or 2.21%, to trade at $59.91 a barrel. A day earlier, Nymex oil prices rose to $61.58, the most since May 18, before closing at $61.26, up $1.06, or 1.76%.
Nymex oil prices were weaker amid speculation weekly supply data due later in the session will show U.S. crude inventories rose at a faster pace than expected last week.
Wednesday's government report was expected to show that U.S. crude oil stockpiles fell by 1.7 million barrels last week, while gasoline stockpiles were forecast to increase by 0.6 million barrels.
After markets closed Tuesday, the American Petroleum Institute, an industry group, said that U.S. crude inventories rose by 1.8 million barrels in the week ended May 29, the second consecutive weekly increase.
According to industry research group Baker Hughes (NYSE:BHI), the number of rigs drilling for oil in the U.S. fell by 13 last week to 646. The drop marks the 25th straight week of declines and the biggest fall in four weeks.
Market players have been paying close attention to the shrinking rig count in recent months for signs it will eventually reduce the glut of crude flowing into the market.
The spread between the Brent and the WTI crude contracts stood at $4.08 a barrel, compared to $4.23 by close of trade on Tuesday.