- EIA reports a 2.1 million increase in crude oil inventories.
- WTI settles at $64.73/bbl, down 79 cents, or 1.21%, on the day.
Crude oil prices came under a modest selling pressure after the weekly report released by the U.S. Energy Information Administration showed that the crude oil inventories increased by 2.1 million barrels for the week ended June 1 amid an increase in output. Experts were expecting a 1.8 million draw.
Following the report, the price of the barrel of West Texas Intermediate quickly lost more than $1 to drop to a daily low of $64.28 before going into a consolidation phase in the second half of the NA session and settling at $64.77.
Meanwhile, investors continue to stay away from crude oil as the uncertainty surrounding OPEC’s next step with regards to output cuts continues. The latest headlines about this matter came from Russian Energy Minister Alexander Novak following his meeting with OPEC Secretary-General Mohammad Barkindo in Vienna. Novak stated that Russia and the OPEC were sharing a common view on the current oil market situation.
Novak further added that OPEC and non-OPEC countries needed to look into a possible easing of oil output restrictions depending on the market demand.
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