Investing.com - Crude oil futures were sharply lower on Tuesday, after the Organization of the Petroleum Exporting Countries raised crude output to the highest level in six months in May.
Investors also looked ahead to key U.S. weekly supply data to gauge the strength of oil demand from the world’s largest consumer.
On the New York Mercantile Exchange, light sweet crude futures for delivery in July traded at USD94.41 a barrel during U.S. morning trade, down 1.4% on the day.
New York-traded oil prices fell by as much as 1.8% earlier in the day to hit a session low of USD94.07 a barrel, the weakest level since June 7.
In its monthly report released earlier in the day, OPEC warned of potential threats to the oil market's balance while reporting an increase in its own output last month.
“Uncertainties on both the demand and supply side have the potential to undermine the expected market balance in the second half of 2013," the cartel said in a statement.
"This is due largely to the weak economic outlook for Europe, as well as to any possible setbacks in the U.S. economic recovery," the statement added.
The oil cartel also raised crude output by 109,000 barrels a day in May to 30.57 million a day, led by an increase in Saudi crude production.
Oil traders now looked ahead to the release of fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of oil demand in the world’s largest oil consumer.
The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show crude stockpiles rose by 1.3 million barrels.
The U.S. is the world’s biggest oil consuming country, responsible for almost 22% of global oil demand.
Meanwhile, speculation that the Federal Reserve will begin to taper its asset purchase program continued following last week’s upbeat U.S. jobs data and after ratings agency Standard & Poor’s revised its long-term outlook on the U.S. credit rating to stable from negative on Monday, citing an improving economic outlook.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for August delivery dropped 1.6% to trade at USD102.22 a barrel, with the spread between the Brent and crude contracts standing at USD7.81 a barrel.
The North Sea Buzzard oil field, which produces 200,000 barrels per day, returned to full production capacity on Monday, weighing on Brent prices.
Investors also looked ahead to key U.S. weekly supply data to gauge the strength of oil demand from the world’s largest consumer.
On the New York Mercantile Exchange, light sweet crude futures for delivery in July traded at USD94.41 a barrel during U.S. morning trade, down 1.4% on the day.
New York-traded oil prices fell by as much as 1.8% earlier in the day to hit a session low of USD94.07 a barrel, the weakest level since June 7.
In its monthly report released earlier in the day, OPEC warned of potential threats to the oil market's balance while reporting an increase in its own output last month.
“Uncertainties on both the demand and supply side have the potential to undermine the expected market balance in the second half of 2013," the cartel said in a statement.
"This is due largely to the weak economic outlook for Europe, as well as to any possible setbacks in the U.S. economic recovery," the statement added.
The oil cartel also raised crude output by 109,000 barrels a day in May to 30.57 million a day, led by an increase in Saudi crude production.
Oil traders now looked ahead to the release of fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of oil demand in the world’s largest oil consumer.
The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show crude stockpiles rose by 1.3 million barrels.
The U.S. is the world’s biggest oil consuming country, responsible for almost 22% of global oil demand.
Meanwhile, speculation that the Federal Reserve will begin to taper its asset purchase program continued following last week’s upbeat U.S. jobs data and after ratings agency Standard & Poor’s revised its long-term outlook on the U.S. credit rating to stable from negative on Monday, citing an improving economic outlook.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for August delivery dropped 1.6% to trade at USD102.22 a barrel, with the spread between the Brent and crude contracts standing at USD7.81 a barrel.
The North Sea Buzzard oil field, which produces 200,000 barrels per day, returned to full production capacity on Monday, weighing on Brent prices.