Oil prices have recorded a marginal decline on account of rising US crude stockpiles and surging US production.
Market watchers and analysts continue to be wary of a potential renewal of US sanctions against Iran, a major oil producer.
Brent crude oil futures, the international benchmark for oil prices, dropped five cents to touch $73.31 a barrel, according to Reuters.
US West Texas Intermediate (WTI) crude futures dipped just one cent, trading at $67.92 per barrel.
As per the data published by the US Energy Information Administration (EIA), crude inventories soared 6.2 million barrels to reach 435.96 million barrels in the week up to 27 April.
The level touched by the US crude stockpiles represents the highest in this year.
Rivkin Securities investment analyst William O’Loughlin was quoted by the news agency as saying: “The (EIA) report showed a much larger than expected crude build for last week, as well as an unexpected build in gasoline inventories.”
Meanwhile, US oil output jumped to a record high of 10.62 million barrels per day, which marks a rise of more than 25% since mid-2016.
In terms of production, the US is currently only behind Russia, which produces around 11 million barrels per day.
Other major factors impacting oil prices are declining production in Venezuela as a result of political and economic unrest, along with expectations that the US will enforce new sanctions on Iran.
US President Donald Trump has until 12 May to decide whether to impose sanctions on Iran.
If he chooses not to continue with the current waiver of Iran sanctions, then Iran exports will be likely to take a hit.