Oil prices extended losses Wednesday as traders digested the newly-released US crude stockpile data.
Stocks of gasoline and distillates rose more than anticipated.
Meanwhile, uncertainties about an extension to OPEC-led (Organization of the Petroleum Exporting Countries) production cuts also weighed on the market, as members debate the path for an extension of the group's supply-cut agreement.
For Brent, WTI, U.S. gasoline and U.S. heating oil, the net long declined by 28 million barrels after rising by 237 million barrels over the previous four weeks, data from regulators and exchanges shows. U.S.'s West Intermediate Texas (WTI) crude futures fell 1.64% in the session, or 95 cents, to $57.04/Bbl.
Kuwait's oil minister said Wednesday that the Joint Ministerial Monitoring Committee of OPEC and non-OPEC countries has recommended that producers extend the cuts by six or nine months, according to a report from the Financial Times (https://www.ft.com/content/ce188608-6b1e-3832-bcd4-4a847bdf5b4c).More news: Disney has found its 'Mulan' in Liu Yifei
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Answering the question whether Iraq itself supports the extension of the Vienna agreement, the minister replied: "Yes, of course".
Data released Wednesday by the U.S. Energy Information Administration revealed U.S. commercial crude inventories dropped by 3.4 million barrels, versus expectations for a 2.3-million-barrel drawdown. That was a bit higher than the forecast for a decline of 3 million barrels from analysts surveyed by S&P Global Platts.
OPEC and non-OPEC countries made a decision to extend oil output cuts for nine months in Vienna on May 25.
Gasoline stocks rose by 3.6 million barrels, compared with analysts' expectations in an economist poll for a 1.2-million-barrel gain.