SINGAPORE – Oil prices fell on Thursday in Asia after the US Energy Information Administration (EIA) reported that US crude oil production reached a record 11,9 million barrels per day in the week ending January 11, up from 11,7 million bpd a week earlier.
Crude Oil WTI Futures were down 0,7% at $51,97 per barrel by 12:48 AM ET (05:48 GMT).
International Brent Oil Futures slid 0,6% to $60,99 per barrel.
The EIA also reported that gasoline inventories rose by 7,5 million barrels, compared to expectations for a stock build of 2,77 million barrels, while distillate stockpiles increased by 2,97 million barrels, compared to forecasts for a gain of 1,57 million.
Meanwhile, a separate EIA ShortTerm Energy Outlook reiterated expectations for a record high of more than 12 million bpd in US production this year and possibly around 13 million bpd by 2020. That increase threatens to nullify most of the effect of output cuts led by OPEC and Russia that were announced at the end of last year.
Slowing global economic growth was also cited as a headwind for oil prices after China reported weakerthan-expected export and PMI data earlier this month.
Data on Wednesday also showed Japan’s core machinery orders in November dropped sharply, adding to concerns that the impact of the US. China trade dispute has begun to spread to the global economy.
The economic outlook was darkened further this week after British lawmakers on Wednesday rejected Prime Minister Theresa May’s deal to leave the European Union.
If nothing is approved by March 29, Britain would make a “no-deal” departure from the bloc, which could pose dire economic risks. – Reuters
