Oil price dips on high OPEC supplies
Oil prices dropped on Wednesday after a rise in US crude inventories and ongoing high output from OPEC producers revived concerns of a fuel supply overhang.
Brent crude futures LCOc1, the international benchmark for oil prices, were at $48.81 per barrel at 0259 GMT (3.59 am ET), down 3 cents from their last close.
US West Texas Intermediate (WTI) crude futures CLc1 were at $46.33 per barrel, down 7 cents, according to Reuters.
US crude stocks rose last week, adding 1.6 million barrels in the week to July 14 to 497.2 million barrels, industry group the American Petroleum Institute said on Tuesday.
Outside the United States, supplies from the OPEC remained high, largely because of rising output from member-states Nigeria and Libya, despite the club’s pledge to cut production.
Nigeria and Libya are exempt from the deal between OPEC and other producers, including Russia, to cut production by around 1.8 million barrels per day between January this year and March 2018 in order to tighten the market and prop up prices.