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Oil Prices Edge Down Amid Record U.S. Crude Output

Published 02/28/2019, 12:46 AM
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Investing.com - Oil prices edged down on Thursday in Asia amid signs of surging U.S. crude oil production.

Crude Oil WTI Futures dropped 0.1% to $56.89 per barrel by 12:27 AM ET (05:27 GMT). International Brent Oil Futures fell 0.3% to $66.41.

Both WTI and Brent are up more than 30% from Christmas Eve lows, and about 25% or so higher since January after the OPEC+ production cuts announced on Dec. 7.

Prices were under pressure on Thursday after the U.S. Energy Information Administration (EIA) showed American crude output rose by more than 2 million barrels per day over the last year.

On the other hand, the EIA also reported that crude oil inventories fell by 8.65 million barrels in the week to Feb. 22 compared to forecasts for a build of 2.84 million.

It was the first U.S. crude stockpile drop in six weeks, coming after the production cuts by OPEC. In the previous week to Feb. 15, crude balances had risen by nearly 3.7 million barrels.

Separately, weaker-than-expected Chinese PMI data also weighed on oil prices.

Data on Thursday showed that the official Purchasing Manager's Index (PMI) fell to 49.2 in February, the weakest level since February 2016. It is the latest sign that China’s economy is still losing steam, after last year's growth cooled to a near 30-year low.

China is the world’s biggest oil importer.

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