Oil Dips as U.S. Fuel Stocks Grow and Production Increases

(Bloomberg) — Oil edged lower after builds in gasoline and distillate inventories as well as an increase in the U.S production during peak summer demand.

Futures earlier fell as much as 1.8% in New York on Wednesday. Domestic crude supplies tumbled by 7.9 million barrels last week, according to a U.S. government report. Gasoline and distillates inventories both rose, while inventories at the nation’s largest storage hub in Cushing, Oklahoma, fell by 1.6 million barrels.

Earlier, Saudi Arabia and the United Arab Emirates were said to resolve the standoff that has prevented OPEC+ from satisfying growing demand for extra barrels. The proposal, which involves allowing the UAE a higher output quota, would need to be approved by all OPEC+ members before it can take effect. The UAE said OPEC+ talks are ongoing.

West Texas Intermediate crude futures for August delivery fell $1.35 to $73.90 a barrel at 11:39 a.m. in New York. Brent for September settlement fell 96 cents to $75.53 a barrel on the London-based ICE Futures Europe exchange.

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