US crude output rises in March: EIA data

US field production of crude oil rose in March to 12.696 million barrels per day, the highest since March 2020, when the COVID-19 pandemic began to decimate global energy demand, Energy Information Administration data showed on Wednesday.

US product supplied of crude and petroleum products — a proxy for demand — rose to 20.449 million bpd, the highest since November 2022, EIA data showed. Product supplied of finished motor gasoline rose in March to 9.007 million bpd, the highest since August 2022.

Daily trading

Oil prices fell on Wednesday on a stronger US dollar and as weak data from top oil importer China raised demand fears.

Brent crude futures for August delivery were down 73 cents, or 0.99 percent, to $72.98 a barrel at 1353 GMT. US West Texas Intermediate

crude fell 90 cents, or 1.3 percent, to $68.56.

Both benchmarks fell by over $2 earlier in the session and by more than 4 percent on Tuesday.

China’s manufacturing activity contracted faster than expected in May on weakening demand, with the official manufacturing Purchasing Managers’ Index down to 48.8 from 49.2 in April. The outcome lagged a forecast of 49.4.

Further pressure came as the US dollar rose, making commodities more expensive for buyers holding other currencies and weighing on oil demand.

Market players are preparing for the upcoming June 4 meeting of OPEC+ — the Organization of the Petroleum Exporting Countries and allies including Russia.

Mixed signals by major OPEC+ producers on whether or not the group will decide to further cut oil production have sparked recent volatility in oil prices.