Brent’s raw earnings were down 39 cents, or 0.5 percent, to $ 71.79 in barrels up to 0658 GMT.
US crude income for July delivery dropped 59 cents, or 0.9%, to $ 62.54. The June contract ended on Tuesday, setting at $ 62.99 per barrel, down 11 cents.
Official data from the US Information Administration oil reserves report will be held later on Wednesday.
Outside the United States, Saudi Arabia said on Wednesday it was committed to a balanced and sustainable oil market.
Saudi Arabia has been at the forefront of supply cuts led by the Organization of Petroleum Exporting Countries (OPEC), of which the kingdom is the de facto leader, which began in January and aims to reduce global oversupply.
Due to the layoffs, Bank of America Merrill Lynch said crude production by OPEC and its allies fell from 2.3 million barrels a day (bpd) between November 2018 and April 2019. This has helped push Brent’s gross prices out of more than a third since the beginning of the year.
The bank said some of the cutbacks were offset by a slowdown in global oil demand growth due to trade tensions at just 0.7 million bpd in the fourth quarter of 2018 and the first quarter of this year versus a five-year average 1.5 million bpd.
Despite slowdown, US bank Morgan Stanley (NYSE: MS) said it was expecting Brent’s prices to trade at a level of between $ 75 and $ 80 per barrel in the second half of this year, driven by tight supply and demand bases.
The physical oil market is also showing signs of tightness.
Qatar Petroleum has sold al-Shaheen July delivery of July with the highest average price from 2013 to $ 3.06 a barrel over Dubai’s reference quota – in strong demand for heavy average grades in Asia, according to numerous trading sources.
Beyond market bases, oil traders are looking for tensions between the United States and Iran.
US President Donald Trump threatened Iran Monday with “great strength” if he attacked US interests in the Middle East.
On Tuesday, acting US Secretary of Defense Patrick Shanahan said the threats from Iran remained high.
Tensions have risen since Trump re-imposed sanctions on Iranian oil exports in an attempt to suffocate the country’s economy and force Tehran to halt its nuclear program./Investing.com