21.09.201703:42:00UTC+00Oil Drops as U.S. Crude Inventories, Production Rise

Oil markets fell on Thursday, pressured by growing crude inventories and production in the U.S. along with a firmer dollar, which likely restricts fuel consumption in countries that use other currencies.

Brent crude futures, the international benchmark for oil prices, stood at $56.18 a barrel, slipping 0.2 percent, from their previous close.

U.S. West Texas Intermediate (WTI) crude futures were at $50.64 per barrel, lower by five cents.

U.S. commercial crude oil inventories increased for a third consecutive week, building by 4.6 million barrels in the week ending Sept. 15 to 472.83 million barrels.

Oil production in the U.S. have hugely recovered from the shutdowns, as they stand at 9.51 million barrels per day, higher from 8.78 million bpd directly after Hurricane Harvey hit the U.S. Gulf Coast.

WTI acquired support from a solid draw in gasoline stocks by 2.1 million barrels to 216.19 million barrels, according to traders. They also said that the stronger dollar weighed on Brent, as rising crude stocks and production in the United States added pressure on the WTI.

OPEC will meet in Vienna on Friday and discuss extending its deal to reduce production with some non-OPEC producers that has been in place since January.

Front-month Brent futures prices have increased by over a quarter since June.