Brent declines as market eyes potential glut
The front-month ICE Brent contract has declined by $0.14/bbl on the day, to trade at $68.42/bbl at 09.00 GMT.
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Upward pressure:
Oil has found some support after the US Energy Information Administration (EIA) reported a surprise draw in US crude oil stocks.
Commercial US crude oil inventories have declined by 3.9 million bbls to touch 422 million bbls for the week ending 11 July, according to data from the EIA.
The drop in oil stocks was “more than expected,” according to ANZ’s senior commodity strategist Daniel Hynes.
A decline in crude stockpiles typically indicates stronger demand and can push Brent's price higher.
Downward pressure:
Brent crude’s price has declined for a third straight session as investors continue to grow wary of a potential supply surplus later this year.
Total crude oil production by OPEC+ members averaged 41.56 million b/d last month, about 349,000 b/d higher than in May.
Oil production by OPEC+’s de-facto leader Saudi Arabia, increased by 173,000 b/d on the month to 9.36 million b/d in June. Production in the UAE increased by 83,000 b/d to about 3.1 million b/d last month.
Besides, the US EIA expects global oil production to rise by 1.8 million b/d this year, before increasing by another 1.1 million b/d in 2026.
“The planned increases to OPEC+ production combined with strong supply growth outside of OPEC+ continue to drive strong growth in global liquid fuels production in our forecast,” the EIA said earlier.
By Aparupa Mazumder
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