Crude Oil futures are trading lower in the early part of Thursday’s Asian session despite news that the Organization of the Petroleum Exporting Countries produced slightly less crude last month.
On the New York Mercantile Exchange, light, sweet crude oil futures for May delivery fell 0.28% to USD94.38 per barrel in Asian trading Thursday after settling down 0.18% at USD94.03 a barrel on Wednesday in the U.S.
On Wednesday, the U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories rose by 250,000 barrels in the week ended April 5, well below expectations for an increase of 1.4 million barrels.
Total U.S. crude oil inventories stood at 388.9 million barrels as of last week, the highest level since 1990, which kept prices lower.
Crude and other commodities were hampered after several members of the Federal Reserve said the central bank should begin winding down its monetary easing program later this and perhaps end the program outright by year-end, according to the latest Federal Open Market Committee meeting minutes.
"A few members felt that the risks and costs of purchases, along with the improved outlook since last fall, would likely make a reduction in the pace of purchases appropriate around midyear, with purchases ending later this year," the Fed said in the minutes.
OPEC’s production fell by 170,000 barrels per day last month to 30.25 million barrels per day. Saudi Arabia, the cartel’s largest producer, pumped an average of 9.2 million barrels per day in March, about the same as it produced in the previous month.
OPEC, which accounts for 40% of the world’s oil output, is producing at a rate slightly above its 30 million barrels per day limit. The cartel next meets on May 31 in Vienna.
Elsewhere, Brent crude for May delivery fell 0.17% to USD105.46 per barrel on the ICE Futures Exchange.
Courtesy : investing.com