US inventories rise, oil prices fall
Oil prices fell in early trading on Thursday after US gasoline and diesel inventories rose and Saudi Arabia cut its crude prices to Asian crude buyers in July.
Brent crude was down 21 cents, or 0.3%, at $64.65 a barrel by 0047 GMT. U.S. West Texas Intermediate crude was down 29 cents, or 0.5%, at $62.58.
Oil prices closed about 1% lower on Wednesday after official data showed US gasoline and distillate inventories grew more than expected, reflecting weaker demand in the world’s top economy. [EIA/S]
Adding to the weakness, Saudi Arabia, the world’s biggest oil exporter, cut its crude prices to Asian crude buyers in July to nearly a four-year low.
The price cut by Saudi Arabia, the top oil producer in OPEC+ — a group of oil producers that includes members of the Organization of the Petroleum Exporting Countries and allies such as Russia — follows a move by OPEC+ over the weekend to raise output by 411,000 barrels per day for July.
The strategy of OPEC+ leaders Saudi Arabia and Russia is partly to punish overproducing producers and claw back market share, Reuters has reported. Meanwhile, Canada braced for possible retaliation and the European Union reported progress in trade talks as new U.S. metals tariffs stoked more disruption in the global economy and added urgency to negotiations with Washington.
"The uncertainty fueled by President Trump's shift in stance on tariffs has raised concerns about a global economic slowdown," analyst Ole Hansen at Saxo Bank said in a note.
Source: Investing.com
