The price of crude oil fell today after the Energy Information Administration reported another construction of inventories at 2.2 million barrels for the week to June 7. It is compared to a build of 6.8 million barrels a week earlier combined with a 3.2 million-barrel builds on fuel inventories as well as pushing lower prices.
Last week, fuel inventories added 800,000 barrels, according to the EIA, despite driving times that might be speeding up. Fuel production was averaging 10.3 million barrels a day last week, compared to 10 million bpd a week earlier.
The average fuel production has an average of 5.2 million bpd at the time of reporting with inventories dropping 1
The inventory report came amid a decline in oil prices as the market handles breathing for OPEC's decision on reducing oil production, namely, if they extend the cut until the end of the year.
There is also a recurrence of uncertainty about demand trends as the US-Chinese trade continues to grow. The latest update here comes from President Trump, which threatens tariffs with another US $ 300 billion worth of Chinese goods if China's President Xi Jinping has not passed on a scheduled bilateral meeting at the G20 summit later this month in China.
A day earlier, the EIA released the latest Energy Freedom of Energy, which changed the average price projections in order of the latest price developments. Now, the authorities expect Brent crude to average US $ 67 on a barrel, down from US $ 69 a barrel forecast in the May edition of STEO.
EIA also had a lesser amount of news for oil prices: it said US oil production rose by 1.4 million bpd this year, with a 1-percent reduction from May The projection is still a major increase rate.
At the time of writing, Brent crude was trading at US $ 61.06 a barrel, with West Texas Intermediate through Irina Slav for Oilprice.com
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