USA oil price falls amid rising stockpiles

A view of Mexico's national oil company Pemex's refinery in Salamanca

Crude Oil Dips After Inventories Data

On the New York Mercantile Exchange, West Texas Intermediate futures CLZ7, -0.42% were trading down 0.5% at $52.20 a barrel.

Crude oil prices fell Wednesday after United States government data confirmed a build in domestic oil stockpiles.

US oil prices extended declines on Thursday after government data showed a surprise climb in USA crude inventories.

The Organization of the Petroleum Exporting Countries, Russia and other producers have cut oil output by about 1.8 million barrels per day (bpd).

However, the oil prices were capped as the Saudi energy minister said on Tuesday that the oil exporter's focus remained on reducing oil stocks to their five-year average and raised the prospect of prolonged output restraint once an OPEC-led supply-cutting pact ends, according to Reuters. That helped boost gasoline and heating oil futures for a while, but those contracts followed crude into negative territory in the early afternoon. A forecast from the EIA, meanwhile, said expectations for WTI are what drive its forecast for crude oil production.

The deal, which was extended in May through March 2018, is expected to be a key topic of debate at OPEC's next official meeting in Vienna in November.

Oil prices have been rising for weeks and some investors have begun to take profits, brokers say.

USA crude stocks rose last week, but gasoline and distillate inventories fell much more than anticipated, Energy Information Administration data showed on Wednesday.

Oil steadied on Thursday, pressured by an unexpected increase in United States crude inventories, high USA production and exports, but was supported near multi-month highs by tighter crude markets. Early October production levels were impacted by Gulf of Mexico operations shut down ahead of Hurricane Nate.

Brent crude LCOZ7, +0.02%, the global benchmark, was down 0.4%, to $58.12 a barrel on London's Intercontinental Exchange.

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