Oil prices fell yesterday after industry data showed an increase in US crude inventories and as Saudi Arabia pledged to keep markets balanced.
However, analysts said oil markets remained tight amid supply cuts led by producer group Opec and as political tension escalates in the Middle East.
Brent crude futures were down 36 cents, or 0,5 percent, at $71,82 a barrel by 4:14am GMT.
US West Texas Intermediate (WTI) crude futures for July delivery were down 49 cents, or 0,8 percent, at $62,64. The June contract expired on Tuesday, settling at $62,99 a barrel, down 11 cents.
The American Petroleum Institute (API) said on Tuesday that US crude stockpiles rose by 2,4-million barrels last week, to 480,2-million barrels, compared with analysts’ expectations for a decrease of 599 000 barrels.
Official data from the US Energy Information Administration’s oil stockpiles report is due later on Wednesday.
Outside the US, Saudi Arabia on Wednesday said it was committed to a balanced and sustainable oil market.
Saudi Arabia has been at the forefront of supply cuts led by Opec, of which the kingdom is the de facto leader, which began in January and are aimed at reducing global oversupply.
Because of the cuts, Bank of America Merrill Lynch said crude output by Opec and its allies fell by 2,3 million barrels per day (bpd) between November 2018 and April 2019.