Oil prices fell in Asia on Thursday as dealers fretted over a lower-than-expected drop in US crude production that dimmed hopes of a quick end to a global supply glut, analysts said.
US benchmark West Texas Intermediate for June delivery fell 58 cents to USD 60.35 while Brent crude for June eased 56 cents to USD 67.21 in mid-morning trade.
Daniel Ang, investment analyst at Phillip Futures in Singapore, said dealers were focusing on data in the Department of Energy's latest stockpiles report showing US crude-oil production only slipped marginally, to 9.4 million barrels per day.
"Prices have come off because markets had been anticipating that US production numbers would have come down lower," Ang told AFP.
Traders have been hoping a steady decline in US production could pave the way for an easing of a global supply glut that has depressed prices since last year. Ang said oil prices had climbed to close at fresh 2015 peaks yesterday as an initial reaction to the stockpiles report, which showed US crude reserves tumbled by 3.9 million barrels in the week to May 1, the first decline in 16 weeks.
Analysts had expected an increase of 1.5 million barrels, according to a Bloomberg News poll. Despite the decline, at 487.0 million barrels of crude, the stockpiles were at their highest level on record for this time of year. "That initial bullishness over the stockpiles decline has worn off this morning," Ang said.
Weak US economic data released yesterday was also weighing on oil prices, Ang said. Non-farm productivity fell 1.9 percent in the first quarter year-on-year. It was the second straight quarterly fall.
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