Investing.com - Crude prices declined on Thursday, after monthly data from the International Energy Agency revealed production among OPEC members surged in August, pushing global inventories to a record.
Brent crude futures, the benchmark for oil prices outside the U.S., dipped 71 cents, or 0.9%, to $79.06 a barrel by 9:50AM ET. Wednesday’s settlement for the global benchmark was the highest since May.
Meanwhile, New York-traded WTI crude futures dropped $1.04, or 1.5%, to $69.33 a barrel, a day after marking the highest settlement since July 20.
The International Energy Agency in a closely followed monthly report said daily crude-oil output in the Organization of the Petroleum Exporting Countries climbed in August by 420,000 barrels per day (bpd), to average 32.63 million a day.
That output more than made up for an expected decline in Iranian supply due to extant and pending U.S. economic sanctions.
The August report also signaled that global supplies hit a record of 100 million barrels a day.
Market participants have been watching Hurricane Florence, which was downgraded over the Atlantic Ocean late Wednesday to a Category 2 storm.
Even so, it is expected to remain an “extremely dangerous major hurricane” when it nears the coast late Thursday and Friday, according to the National Weather Service.
The storm, which is on track to disrupt the Carolinas and Virginia, has the potential to cause disruptions to the flow of fuel through the key Colonial Pipeline, which moves gasoline and diesel from Houston through states in the Southeast, including the Carolinas, to Linden, N.J.
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