Oil fell to its lowest settling price in almost two weeks as US stockpiles gained and OPEC+ members discussed another major production increase, just as demand faces headwinds from the US-led trade war.
West Texas Intermediate slid 0.6% to settle just above $61 a barrel. Brent dropped to settle below $65. If OPEC+ approves the potential increase of 411,000 barrels a day when it meets on June 1, it will mark the third month in a row the cartel has agreed to boost supplies by triple the initially scheduled amount.
“The most likely outcome is another headline increase of 411,000 barrels a day from July, which will be primarily Saudi barrels,” said Helima Croft, head of global commodity strategy at RBC Capital Markets LLC.
Crude is under pressure as the Organization of the Petroleum Exporting Countries and its allies push barrels back into a market that’s already looking well supplied, amplifying concerns about a glut. The US-led trade war has stirred fears of slower economic growth and weaker energy demand, deepening the price losses.
Oil inventories are rising in the US, still the world’s biggest consumer of the commodity. US commercial inventories of crude rose for a second week, according to data on Wednesday, while gauges of gasoline and distillate demand were weak, even as the summer driving season approaches.
Oil Prices
WTI for July delivery fell 0.6% to settle at $61.20 a barrel in New York.
Brent for July settlement fell 0.7% to settle at $64.44 a barrel.
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