Oil drops as US crude output rises
Oil declined as traders gave more weight to government data showing an increase in US output than to numbers reporting falling stockpiles.
Futures fell 0.6 per cent in New York. While crude inventories declined by 1.53mn barrels last week, production rose to the highest since July 2015, according to data from the Energy Information Administration on Wednesday. West Coast crude supplies fell by 2.85mn barrels, the biggest drop since December 2014. The region is often ignored by traders because its distribution system is isolated from the rest of the country.
West Texas Intermediate for September delivery dropped 28 cents to US$48.88 a barrel at 10:40am on the New York Mercantile Exchange. Brent for October settlement fell 14 cents to US$51.64 a barrel on the London-based ICE Futures Europe exchange.