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Oil remains below $45 amid growing concern over U.S. supply glut

Published 15/06/2017, 08:58
© Reuters.  Oil remains below $45
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Investing.com - Oil prices edged lower in European trading on Thursday, as data showing U.S crude stockpiles shrank by less than anticipated, while gasoline inventories increased, underlined fears over a global supply glut.

The U.S. West Texas Intermediate crude July contract was at $44.48 a barrel by 3:55AM ET (0755GMT), down 25 cents, or around 0.6%. The U.S. benchmark fell to its lowest since May 5 at $44.38 in overnight trade.

Elsewhere, Brent oil for August delivery on the ICE Futures Exchange in London shed 25 cents to $46.75 a barrel after dropping to $46.70, a level not seen since May 5.

Oil prices plunged nearly 4% on Wednesday after the U.S. Energy Information Administration said that crude oil inventories fell by 1.7 million barrels in the week ended June 9, disappointing expectations for a decline of around 2.8 million barrels.

The report also showed that gasoline inventories increased by 2.1 million barrels, compared to forecasts for a drop of 457,000 barrels. For distillate inventories including diesel, the EIA reported a rise of 328,000 barrels.

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

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

Elsewhere on Nymex, gasoline futures for July inched down 0.9 cents, or about 0.7%, to $1.426 a gallon, while July heating oil dipped 0.2 cents to $1.408 a gallon.

Natural gas futures for July delivery tacked on 0.4 cents to $2.937 per million British thermal units, as traders looked ahead to weekly storage data due later in the global day.

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