Oil prices fall on rising U.S. inventories

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Oil prices fell on Thursday after U.S. crude inventories swelled to their highest level since December adding to concerns about a global glut but talk of an output reduction by the Organization of Petroleum Exporting Countries, OPEC limited losses.

Benchmark Brent fell 23 cents to 63.25 dollars a barrel by 1212 GMT, after dropping by over 1dollar in early European trading. U.S. WTI fell more than a1dollar before easing back to trade down 39 cents at 54.24 dollars.

U.S. commercial crude oil inventories climbed by 4.9 million barrels to 446.91 million barrels last week, the U.S. Energy Information Administration (EIA) said on Wednesday, its highest level since December.

U.S. crude oil production also stayed at a record 11.7 million barrels per day (bpd), the EIA said.

Tamas Varga, analyst at PVM brokerage, said the market trend was still bearish.

“OPEC is worried about the emergence of a glut that could pull down prices further. But it’s biggest exporter Saudi Arabia is also under U.S. pressure to prevent prices spiking higher again,” he said.

The oil market has also been weighed down by weak Asian and European markets as investors fret about slowing global growth in the face of rising U.S. interest rates and trade tensions.


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