Brent crude fell below $106 a barrel today on increased oil output from the Organization of the Petroleum Exporting Countries (OPEC).
According to Reuters, Brent crude for September delivery declined 53 cents to $105.98 a barrel while US crude futures for September delivery slipped 94 cents to $99.33 a barrel.
A survey by Reuters showed that OPEC pumped more oil in July than in June despite concerns that unrest in Africa and the Middle East may hurt production.
Meanwhile, gasoline stockpiles increased in the US, creating concerns over the country’s demand outlook.
Energy Information Administration (EIA) data has revealed that gasoline and distillates stockpiles increased, despite a bigger-than-anticipated drop for crude.
The EIA revealed that crude supply from the US is surging with exports reaching 288,000bpd in May 2014, the highest since April 1999.
Oil prices have eased after increasing in June due to political tensions in the Middle East, Africa and Europe.
Traders are waiting to see how sanctions from the EU and the US against Russia over the Ukraine crisis will affect its oil exports.
