Investing.com - West Texas Intermediate oil extended losses in North American trade on Wednesday, as data showed that oil supplies in the U.S. fell more than expected.
Crude oil for August delivery on the New York Mercantile Exchange fell 1.16% to trade at $73.25 a barrel by 10:50 AM ET (2:50GMT) compared to $73.22 ahead of the report.
The U.S. Energy Information Administration said in its weekly report that crude oil inventories fell by 12.633 million barrels in the week ended July 6. Market analysts' had expected a crude-stock decline of 4.489 million barrels, while the American Petroleum Institute late Tuesday reported a decline of 6.8 million barrels.
Supplies at Cushing, Oklahoma, the key delivery point for Nymex crude, decreased by 2.062 million barrels last week, the EIA said.
The report also showed that gasoline inventories decreased by 694,000 barrels, compared to expectations for a decrease of 750,000 barrels, while distillate stockpiles fell by rose by 4.125 million barrels, compared to forecasts for a rise of 1.2 million.
In a separate report, oil production of the Organization of the Petroleum Exporting Countries and Russia rose by 173,000 barrels per day (bpd) in June to 32.3million bpd, lead by increase in supply from Saudi Arabia. OPEC agreed in June to raise output at a nominal increase of 1 million barrels a day (bpd) amid pressure from the U.S. to decrease prices.
Oil prices were also held back by trade tariff concerns between the U.S. and China as U.S. President Donald Trump threatened to impose tariffs of 10% on an additional $200 billion of Chinese goods. China has said it will retaliate but doesn’t import enough from the U.S., so is looking at other ways to hit back.
Elsewhere, on the ICE Futures Exchange in London, Brent oil slumped 2.21% to $77.12 while gasoline futures fell 1.48% to $2.1334 a gallon, while heating oil lost 1.66% to $2.1850 a gallon.