2018.05.3102:13:00UTC+00Oil Prices Edge Down as Traders Eye OPEC Supply Decision

Oil prices fell on Thursday, after sharp increases in the prior session, pulled down by an unexpected rise in U.S. crude oil stockpiles and expectations that OPEC and other producers could rule to boost output at a meeting in June.

The overnight gain came despite the prospect of increasing supplies from OPEC and Russia, and some analysts see the market fundamentals as supportive to prices.

Brent crude fell 19 cents and traded at $77.31 per barrel, after closing in the last session 2.8 percent higher. U.S. WTI crude edged down 4 cents at $68.17 per barrel. In the prior session, it closed up $1.48 or 2.2 percent at $68.21 per barrel.

Global stockpiles have been broadly declining, but U.S. crude inventories increased by 1 million barrels in the week to May 25 to 434.9 million barrels, according to data from industry group the American Petroleum Institute. The figures topped analyst estimates for a decline of 525, 000 barrels. Data from the EIA is due later on Thursday, a day later than the regular schedule due to a public U.S. holiday.

A potential output boost by the OPEC and non-OPEC members has been the center of the markets' attention. Saudi Arabia, the de facto leader of the producer cartel, and Russia, have talked about bolstering production by around 1 million barrels per day.

ANZ Bank said in a note that oil prices are likely to continue being sensitive to headlines given that the OPEC meeting is still another three weeks away.