HNI Commodity Pack, Oil dips on rising US fuel stocks, but OPEC's supply cuts support market
Oil prices dipped on Wednesday, as refined product inventories in the United States rose in what the market interpreted as a sign of lackluster demand.
Brent crude futures, the international benchmark for oil prices, were down 24 cents, or 0.4 percent, at $62.62 a barrel as of 0713 GMT. US West Texas Intermediate (WTI) crude futures were at $57.37 a barrel, down 25 cents, or 0.4 percent, from their last settlement.
Traders said prices fell after an American Petroleum Institute (API) report late on Tuesday that showed a 9.2 million barrel rise in gasoline stocks in the week ended December 1, and an increase of 4.3 million barrels in distillate inventories, which include motor diesel and heating oil.
OPEC-led supply cuts
Outside the United States, analysts said supply cuts by the Organization of the Petroleum Exporting Countries (OPEC), Russia and other producers - last week extended to all of next year - have helped lift Brent prices by more than 40 percent since June, and more than 130 percent since early 2016, when they hit their lowest level since 2003.
US oil production
One factor that could undermine OPEC's and Russia's effort to cut supplies and prop up prices is US oil production, which has risen by 15 percent since mid-2016 to 9.68 million barrels per day, close to levels of top producers Russia and Saudi Arabia.
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