The futures of oil finished lower after experiencing highs for eight consecutive sessions last Wednesday. Crude inventory figures in the United States showed that the market was still oversupplied.
U.S. West Texas Intermediate (WTI) crude futures were 29 cents lower at $53.11 per barrel, after it hits its best about $53.76 last March 7. Brent crude futures edged down by 37 cents at $55.86 when it touches its one-month gains of $56.65 per barrel.
Global traders are keeping an eye on the initial assessment of U.S. production in the weekly release of EIA that showed domestic profit is currently elevating. The report also suggested US. crude supplies core at Cushing, Oklahoma was higher more than 276,000 barrels.
Both of the contracts had primarily risen for more than a month when Saudi Arabia was said to be urging its rivals and fellow OPEC members to extend supply reduction until June 2017. Traders and speculators reported lasting foundation was still strong and more supply drawdowns are possible as refiners depart preservation period.
Standard Chartered said in a report that Cushings crude inventories was higher by 0.28 million barrels (mb) to 69.42 mb which leaves just over 10mb of available storage. He added that they are not anticipating stockpiles to reach this point, particularly with the added descending pressure on the inventories at Midwest.
The figures suggested a surprising decline in almost all U.S. crude stockpiles, after it dropped in the week by 2.2 million barrels when imports fell by 717,000 barrels. The data was succeeded by non-bearish release from OPEC countries, which said they had reduced the output in March.
But, the Organization of Petroleum Exporting Countries also lifted its expectation for stockpiles from non-member nations this year as the higher price of oil urges shale drillers in the U.S. to producer more.
Oil kingpin Saudi Arabia protected its valuable consumers in Asia from the output reduction.