Oil prices drop marginally on rising output in US
Oil prices have slipped on indications of rising US output, though crude stocks dropped by nearly 13% in the US.
Brent crude futures LCOc1, the international oil price benchmark, were trading at $52.64 per barrel, dropping 8 cents, while the US West Texas Intermediate (WTI) crude futures CLc1 fell by 4 cents to $48.47 a barrel, reported Reuters.
Traders opined that the fall in crude prices was driven by the rising US production, which has crossed 9.5 million barrels per day (bpd).
However, according to reports released by energy services firm Baker Hughes, energy companies in the US continue to decrease rigs drilling for the second time in three weeks, which may gradually slow down output.
The rig count fell by five to 763 in the week ending 18 August.
Commercial crude inventories in the country also declined to 466.5 million barrels, which is a 13% drop from last March.
Rivkin Securities investment analyst William O'Loughlin was quoted by the news agency as saying: “The rebalance of the oil market is well under way according to inventory data, however, the market is heavily focused on the fact that shale supply continues to increase.”
Oil prices are set to receive support as Libya's 280,000 bpd-producing Sharara oilfield has been shut down following a pipeline blockade.