US Oil prices eased after industry data showed more than expected decline in US crude Inventories.
The international Benchmark for Crude oil (WTI) is at $66.56 a barrel down by 0.09 percent whereas BRENT is currently trading at $76.49 a barrel down 0.34 percent.
US Crude output has risen by more than 30 percent in the last two years and hit record 10.9 million barrels per day last week.
Furthermore, due to a significant increase in local demand US crude inventories fell by 4.1 million barrels in the week still its output is now above the top exporter of oil i.e. Saudi Arabia, reported an inventory of 10 million barrel per day and is closed to Russia, the top global producer of Oil, which produces 11.1 million bpd overall in the first two weeks of June as reported by CNBC.
Oil prices showed a slight increase as the American Petroleum Institute (API) reported a draw of 4.1 million barrels to 432.4 million barrels during the week ending 08 June 2018 compared to the previous week’s data, which shows a buildup of 2.1 million barrels.
According to the CNBC’s report “oil prices have increased by 60 percent over the last year as OPEC and non OPEC cartel decided and started to reduce oil inventories.”
According to the Reuters, prices were dragged down by another rise in US oil production, hit a weekly record of 10.9 bpd last week.
According to the EIA report, refinery crude was up by 136,000 barrels per day, whereas Refinery utilization rates increased by 0.3 percent to 95.7 percent of total capacity.