Oil is fall in price on record production data in US

Oil is fall in price on record production data in US

At 434.5 million barrels, US crude oil inventories are in the lower half of the average range for this time of year, according to EIA.

For the week, WTI is on track for a 1.5 percent fall, adding to last weeks near 5 percent decline, while Brent is set to rise 1.3 percent, widening the spread between the two benchmarks.

Brent crude was down 38 cents, or 0.5 percent, at $77.12 per barrel at 0643 GMT, after settling the last session up 2.8 percent.

U.S. oil production is also pressing down on oil prices, and for the week ending May 25, reaching 10.769 million bpd-the fourteenth build in as many weeks.

Russian Federation committed to reduce oil production by 300,000 barrels a day, had been gradually heading towards this level since early 2017 and reached this level last May.

"US production is growing, the line is growing straight up when you look at USA production", said Tony Nunan, oil risk manager at Mitsubishi Corp in Tokyo. The Cana Woodford basin saw the biggest increase in the number of rigs, at 3; The Permian lost one. "Financially it makes sense for buyers to take WTI as it is so cheap". Surging output and a lack of pipeline capacity in the prolific Permian Basin shale play in Texas is exacerbating swelling USA inventories.

On Thursday, the premium for Brent over WTI surpassed $11 a barrel, the largest since early 2015.

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"A drop in inventories in the United States was overshadowed by USA output which jumped to a record high level", ANZ analysts said.

On Wednesday, the American Petroleum Institute was said to report a 1 million barrel increase in crude stockpiles, double the gain forecast in a Bloomberg survey of analysts.

"Investors will hold tight till June 22 as OPEC members meet in Vienna (to consider).supply cut policies for 2018 and beyond", said Benjamin Lu, a commodities analyst at Singapore-based broker Phillip Futures.

OPEC could decide to raise oil output as soon as June to cool the market and due to worries over Iranian and Venezuelan supply and after Washington raised concerns the oil rally was going too far, OPEC sources familiar with the discussions told Reuters last month.

The drawdown assuaged some worries from US traders who have watched the West Texas Intermediate crude (WTI) benchmark weaken due to high production levels and signals that OPEC will let its supply-cut pact come to a close.

Following Saudi Arabia and Russia's proposal to restore output, Rosneft PJSC, Russia's largest oil company, is testing its capacity to bring back production it cut under a deal between Moscow and OPEC, Renaissance Capital said.

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