Oil prices fall as US crude stocks pile up
Oil prices have slipped following reports of an increase in the US crude inventories and production.
Brent crude futures LCOc1 fell 17 cents to $56.12 a barrel, while the US West Texas Intermediate (WTI) crude futures CLc1 dropped 11 cents to $50.58, reported Reuters.
Traders stated that the US Dollar also strengthened, further adding pressure on the oil prices.
Commercial crude oil inventories in the country increased for the consecutive third week soaring by 4.6 million barrels in the week ending 15 September to reach 472.83 million barrels.
Oil production also improved significantly to 9.51 million barrels per day, which reduced to 8.78 million bpd after it was affected by storm Harvey that hit the US Gulf Coast.
OPEC and other oil producing nations are scheduled to meet in Vienna to discuss extending the ongoing deal that curbs production by 1.8 million bpd to March next year to revive prices.
The deal has been in effect since January, but has been blighted by rising production from exempted OPEC members Libya and Nigeria, non-compliance by other countries and rising US output.
However, the market is expected to tighten as Brent futures are said to have increased by more than a quarter since June.