Oil prices fall on record USA output, stock build

China may boost Iranian oil purchases once US sanctions step into force- Report

China may boost Iranian oil purchases once US sanctions step into force- Report

Oil prices fell on Thursday after official data showed an unexpected rise in USA crude stockpiles, United States output hit a record high and major oil exporters increased production.

Light, sweet crude for August delivery rose 0.3% to $69.68 a barrel on the New York Mercantile Exchange.

WTI was trading up 0.35% at $67.99 on the news, with Brent crude still trading down 0.82% at $72.30 at 2:24pm EDT.

In fact, Russian Federation and Saudi Arabia have both started to increase their crude oil production, even before the OPEC+ meeting on June 22.

The Iran-aligned Houthi movement in Yemen said Wednesday one of its drones had attacked Saudi state oil company Saudi Aramco's refinery in Riyadh, according to Houthi-run al-Masira TV, based in Yemen. US crude ended the week down almost 1 percent. -China trade war stoked fears about the strength of demand.

Distillate fuels stockpiles, which include diesel and heating oil, rose by 1.7 million barrels, compared with expectations for an 873,000-barrel gain, the data showed.

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Although global demand for oil is growing, OPEC has tried to control the call for more oil to inflate prices - which is good for the OPEC economies but bad for everyone else.

Of course, not everyone is convinced that oil prices are on a steady decline as many (including USA president Donald Trump, who wants to give American motorists a break at the pump, and countries such as India with their growing but fragile economies) have called for: Daryl Guppy, a trader an author, told CNBC that technical analysis shows oil heading for a rebound. In June, production of crude oil hit 10.7 million bpd and production of natural gas liquids hit 4.2 million bpd.

Goldman still thinks that Brent could retest the $80 a barrel market, but only late this year, instead of in the summer, depending on US oil policies.

"Even though the overall crude number was bearish, the gasoline numbers and distillate numbers were pretty bullish", said Phil Flynn, an analyst at Price Futures Group in Chicago, Reuters reported.

"Refining margins in Asia are under pressure and some of the Chinese independent refiners have cut back on their processing, which is weighing on the Brent market", said Andrew Lipow, president of Lipow Oil Associates in Houston. Prices have been wavering after government data showed a surprise gain in nationwide crude inventories, while gasoline held in USA storage tanks dropped by the most since May on the back of robust fuel demand.

Saudi Arabia boosted production sharply in June, raising crude shipments to world markets by 390,000 barrels a day to 7.6-million barrels a day, Kpler tanker-tracking data showed.

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