By Henning Gloystein
SINGAPORE (Reuters) - Oil prices eased on Thursday, dragged down by rising output, although strong demand and a drop in U.S. fuel inventories provided the market with some support.
Brent crude futures
U.S. West Texas Intermediate (WTI) crude futures
Prices were pulled down by another rise in U.S. oil production
U.S. crude output has risen by almost 30 percent in the last two years, and it is now close to top global producer Russia, which produced 11.1 million bpd overall in the first two weeks of June.
But the rising output came amid strong demand, which traders said prevented crude prices from falling further.
U.S. consumption of gasoline in the United States rose to an historic high of 9.88 million bpd last week, according to the EIA.
In part because of strong demand, U.S. crude inventories
Still, U.S. output is now above that of top exporter Saudi Arabia, which currently churns out slightly above 10 million bpd.
(GRAPHIC: U.S. oil production - https://reut.rs/2JJiOzg)
WORLD CUP MEETING
The surge in American output puts pressure on other producers, who are losing market share.
Russian and Saudi production has been held back voluntarily since 2017, when the Organization of the Petroleum Exporting Countries (OPEC), together with some non-OPEC producers including Russia, started supply cuts aimed at propping up prices.
With Brent prices up by around 180 percent from their 2016 lows and demand strong, OPEC and Russia may soon end their voluntary supply cuts.
OPEC, together with Russia, will officially meet in Vienna on June 22 to discuss its production policy,
With demand for oil strong, Morgan Stanley said the group's "production is likely to creep higher."
(Reporting by Henning Gloystein; editing by Richard Pullin)
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)