Oil falls after record production swells U.S. inventory
Oil prices fell on Thursday after official U.S. crude and gasoline stocks rose against expectations as production hit a record thus extending losses from previous sessions.
Brent crude futures were down 0.3% or 18 cents to $63.88 a barrel by 0517 GMT, dropping down 0.3% on Wednesday.
U.S. West Texas Intermediate crude fell 0.4% or 24 cents to $57.87 after falling 0.5% in the previous session.
The Energy Information Administration said that Crude stockpiles in the United States swelled by 1.6 million barrels last week as production touched a record high of 12.9 million barrels per day in contrast to a forecast of a drop of 418,000 barrels.
More bearish was a 5.1 million-barrel rise in gasoline stocks, compared with forecasts for a 1.2 million-barrel gain.
“Stubbornly high U.S. crude inventories have seen oil prices ease in Asia today,” said Jeffrey Halley, senior market analyst at OANDA. But “dips … are likely to be limited for now, as the U.S. holiday mutes activity,” he added.