But the American Petroleum Institute late Tuesday said its data showed that US crude stockpiles rose by 4.5 million barrels last week.
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Crude inventories USOILC=ECI rose 2.5 million barrels in the week to August 19, compared with expectations for a decrease of 455,000 barrels.
The price of USA oil fell by more than two per cent this afternoon after an unexpected increase in crude stocks in the country reinvigorated worries about a global supply glut. Crude oil prices bottomed out in early 2016.
The oil industry, here and internationally, is still trying to work through glut. However, few analysts expect an agreement will happen given Iran’s reluctance to curb production following the lifting of its sanctions.
West Texas Intermediate for October delivery dropped $1, or 2.1%, to $47.10/bbl at 10:36 a.m. on the New York Mercantile Exchange.
Distillate stockpiles were up 100,000 barrels, still within the average range for the season.
Prices rose Tuesday on reports that Iran is set to participate in a meeting of members of the Organization of the Petroleum Exporting Countries in September to discuss taking coordinated action to raise oil prices.
Brent crude futures fell $1, or 2%, to $48.96.
The API also said gasoline inventories were down by 2.2 million barrels and strategic inventories at the Cushing, Oklahoma hub went up by 417,000 in the seven-day period under review. A Bloomberg survey ahead of the data had forecast a decline of 850,000 bbl. Inventories were at 521.09 MMbbls for the week ending August 12, 2016, according to data released by the EIA (U.S. Energy Information Administration) on August 17, 2016.
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Iraq still isn’t producing as much oil as it should be, Iraqi Prime Minister Haider Al-Abadi told reporters at a press conference in Baghdad Tuesday.
