Oil prices drop as market remains bloated despite OPEC efforts
There has been a fall in oil prices with crude market remaining oversupplied, OPEC's supply cut efforts.
Brent crude slipped by 17 cents to $52.04 a barrel, while the US crude oil traded at 16 cents lower than its last close at $48.91 per barrel, reported Reuters.
Both benchmarks increased after the Energy Information Administration reported a decline of 1.8 million barrels in the US inventory to 520.8 million barrels in the week that ended on 12 May.
The significant increase in US production and supplies to northern Asia has largely offset OPEC-led deal to rebalance the market.
OPEC and other producers decided to reduce oil supplies by 1.8 million barrels per day for the first half of this year.
The deal is likely to be extended to next year March after Saudi Arabia and Russia voiced their support of the extension.
OPEC is scheduled to meet on 25 May to decide the production policy and extension of the deal by nine months.
Thomson Reuters Eikon’s shipping data revealed that US crude exports to Asia have improved to ten tankers in the first quarter of this year.
Oil shipments from North Sea to Asia have also increased to 19 tankers in the same time period.