Futures lost as much as 1.1 percent in New York after climbing 0.3 percent on Wednesday. Crude output rose to 9.29 million barrels a day, the highest level since August 2015, according to the Energy Information Administration. U.S. inventories fell less than all 11 forecasts by analysts surveyed by Bloomberg. OPEC is likely to extend production cuts for six months past June, according to Nigerian Oil Minister Emmanuel Ibe Kachikwu.
Oil is heading for a third weekly loss amid concern that increasing U.S. output will offset efforts by the Organization of Petroleum Exporting Countries and its allies to eliminate a global glut. OPEC will meet May 25 in Vienna to decide whether to extend supply cuts through the second half. Russia is said to support prolonging the curbs, according to a government official.
“The hopes of U.S. stock re-balancing are being thrown into doubt,” said Tamas Varga, an analyst at PVM Oil Associates Ltd. in London.
West Texas Intermediate for June delivery slid as much as 51 cents to $47.31 a barrel on the New York Mercantile Exchange, and was at $47.54 as of 9:52 a.m. London time. Total volume traded was about 8 percent below the 100-day average. The contract gained 16 cents to $47.82 on Wednesday.
Brent for July settlement fell as much as 53 cents, or 1 percent, to $50.26 a barrel on the London-based ICE Futures Europe exchange, after rising 33 cents on Wednesday. The global benchmark crude traded at a premium of $2.60 to July WTI.
U.S. crude output increased by 28,000 barrels a day last week for the longest run of gains since the week ended Nov. 23, 2012, according to EIA data. Nationwide stockpiles fell by 930,000 barrels, compared with the median estimate for a 3 million-barrel drop in the Bloomberg survey.
- Royal Dutch Shell Plc reported first-quarter earnings of $3.75 billion, compared with $1.55 billion a year earlier.
- Pemex is producing more gasoline and diesel at its six refineries across Mexico, reducing fuel imports and leaving less oil available for export.
- Saudi Arabia’s giant oil and gas reserves and any decisions about producing from them will remain solely in government hands after Saudi Aramco’s initial public offering, Deputy Crown Prince Mohammed bin Salman said on state television.