Rising US crude inventories push oil prices down

The oil prices slipped nearly 1% on Wednesday as the data indicated a rise in U.S. crude inventories. The markets remain oversupplied with oil even after the efforts taken by top producers such as Saudi Arabia and Russia to extend output cuts, reported a national news portal.
The Brent crude futures were down 1% from their last close at $51.15 per barrel at 0146 GMT. U.S. crude oil inventories shot up by 882,000 barrels in the week ending May 12 to 523.4 million. The analysts expected for a decrease of 2.4 million barrels, reported a national news portal.
According to a report, North Sea oil production is expected to increase by a net 400,000 bpd in the next two years due to improving the operational efficiency of producers. This move would also increase supply in the markets.
Also, the continuous rise in U.S. production, which has increased by more than 10% since mid-2016 to 9.3 million bpd may also increase the supply of oil, said a market analyst.
The oil prices dipped after Saudi Arabia and Russia said on Monday that there was need for 1.8 million barrels per day (bpd) crude supply cut by the Organization of the Petroleum Exporting Countries (OPEC) and some other producers including Russia to be extended for nine months, until the end of March 2018, mentioned a national news portal.

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