Investing.com - Oil prices took a dip on Thursday morning in Asia due to a surprise surge in inventories in the US, paired with expectations that other markets may decide to increase output next month.
Crude Oil WTI Futures for July delivery were trading at $68.16 a barrel at 11:00PM ET (03:00 GMT), down 0.07%. Brent crude futures for August delivery, traded in London, were down 0.21% at $77.56 per barrel.
US crude inventories rose by 1 million barrels in the week to May 25 to 434.9 million barrels, according to data released by the American Petroleum Institute.
U.S. crude production has risen relentlessly by more than a quarter in the last two years, to 10.73 million bpd, inching ever closer to top producer Russia’s output of around 11 million bpd.
The Organization of the Petroleum Exporting Countries (OPEC) and other non-OPEC members including Russia may start to increase their supply as well. Saudi Arabia, de-facto leader of OPEC, and Russia have discussed raising oil production in the second half of the year by some 1 million barrels per day (bpd) to make up for potential supply shortfalls from Venezuela and Iran.
U.S. sanctions against Iran, which produces 4% of global oil supplies, will likely cause shortages later this year when trade restrictions take effect. Production in Venezuela has also plunged to its lowest level in decades due to its ongoing economic crisis.
In response, OPEC and some non-OPEC producers will meet in Vienna on June 22 to review their commitment to curb their output by about 1.8 million barrels per day until the end of this year.
With the OPEC meeting just three weeks away, oil markets are likely to remain on edge. Any signs that the group may be heading towards an early exit from the production cut agreement would weigh on prices.
Meanwhile, Shanghai Crude Oil WTI Futures for September delivery were up 2.57% at 475.30 yuan ($74.14) per barrel on Thursday at 11:00PM ET (03:00 GMT).