SINGAPORE – Oil prices fell on Thursday morning after major U.S. oil producing state North Dakota posted a surprising output hike and ongoing high stocks were expected to weigh on import and production demand.
Despite a slight draw in overall stocks, government data showed that U.S. crude inventories of almost 485 million barrels were still nearly 90 million barrels higher than this time last year, implying low demand for domestic production as well as imports.
- Front-month U.S. crude was down 39 cents at $60.11 a barrel at 0022 GMT.
- International Brent futures were down 26 cents at $66.55 per barrel.
- Government data showed U.S. oil inventories fell 2.2 million barrels in the week to May 8, to below 485 million barrels. That was still almost 90 million barrels higher than this time last year.
- No. 2 U.S. oil producing state North Dakota posted a surprising output hike in March, even when U.S. crude prices were around six-year lows, latest data showed.
- The dollar index, which measures the greenback against a basket of six major currencies, hit a more than three-month low of 93.461 while gold prices jumped on Wednesday as weaker-than-expected U.S. retail sales bolstered confidence the Federal Reserve will hold off raising rates soon.
This article was from Reuters and was legally licensed through the NewsCred publisher network.