Oil prices fell Thursday owing to rise in US crude inventories and weekly US production, reported Reuters. Brent crude oil were at US$73.56 per barrel—risen 20 cents from their last close. However, based on US Energy Information Administration (EIA), oil prices were weighed down reflecting a 6.2mn barrel jump in U.S. crude inventories.
According to Commerzbank analyst Carsten Fritsch, “It may signal stronger-than-expected demand in Asia. This, combined with constraints in (OPEC) production, could lead to higher prices.”
State-owned oil company Saudi Aramco increased the June Arab Light crude price to US$1.90 a barrel for Asian customers, reportedly highest since August 2014.
Olivier Jakob, managing director of energy consultancy PetroMatrix said: “Overall, we continue to trade a waiting game for the U.S. decision on Iran, waiting to have sanction headlines trigger some frenzied buying.”