Oil prices pulled back on Thursday, paring gains after the U.S. reported mixed data showing the pace of inventory falls slowed, triggering worries that the supply overhang would last for longer.
The Wall Street Journal’s survey of 13 analysts had estimated a decrease of 2.2 million barrels.
The U.S. Energy Information Administration published weekly data on Wednesday showing oil inventories were down less than expected, falling 1.8 million barrels.
The previous week inventory fell by a steeper 5.2 million barrels.
The data also showed the first fall in U.S. production in 13 weeks, however, which was supportive of prices, he said.
Oil prices dip as supply remains ample despite output cuts
The U.S. Energy Information Administration said on Wednesday that crude inventories fell 1.8 million barrels for the week to May 12, to 520.8 million barrels.
Oil prices dipped on Thursday, weighed down by plentiful supply despite ongoing efforts led by OPEC to tighten the market by cutting production.
“OECD stocks were up 24.1 million barrels (in Q1 2017) due to a large build in January,” BMI Research said.
“This leaves OECD stocks 307 million barrels above their five-year average going into Q217.”
Brent crude was down 18 cents, or 0.3 percent, from its last close at $52.03 per barrel at 0244 GMT.
Oil stuck extract crude from the Wilmington Field oil
Oil stuck in Trump slump as risk aversion damps US supply drop Oil rig pump jacks, also known as thirsty birds, extract crude from the Wilmington Field oil deposits area July 30, 2013.
The nation’s oil production dropped to 9.3 million barrels a day, EIA data released yesterday show.
That’s countering optimism after government data showed US stockpiles last week fell for a sixth straight week and crude production dropped, ending the longest stretch of gains since 2012.
— Reuters picLONDON, May 18 — Oil is getting ensnared in the turmoil surrounding Donald Trump even as US crude production, which has undercut Opec’s output curbs, declined for the first time in 13 weeks.
“The impact of the Trump revelations is a short-term risk skewed to the downside,” said Ole Hansen, head of commodities strategy at Saxo Bank in Copenhagen.