Oil prices declined in Asian markets on Thursday following a rise in U.S. fuel inventories and a cut in Saudi oil selling prices for Asian buyers.
Brent crude futures fell 14 cents, or 0.2%, to $64.72 a barrel. U.S. West Texas Intermediate (WTI) crude dropped 24 cents, or 0.4%, to $62.61 a barrel.
Oil prices had already fallen by about 1% on Wednesday after official data showed that U.S. gasoline and refined product inventories increased more than expected.
Saudi Arabia, the world’s largest oil exporter, lowered its July oil selling price for Asian buyers to nearly the lowest level in four years.
Analysts at ANZ Bank wrote in a note: “Although the cut in Saudi prices was smaller than expected, it signals that demand remains weak despite entering the peak demand season.”
The Saudi price reduction came after OPEC+ recently agreed to raise production by 411,000 barrels per day in July.
According to a Reuters report, independent market analyst Tina Teng said that weak U.S. economic data and ongoing developments in U.S.-China trade relations also impacted oil prices.
