01/08/2018
TOKYO (Reuters)
Oil prices fell on Wednesday after industry data showed that US inventories of crude rose unexpectedly, with the new month starting to drop after it suffered its biggest monthly loss in two years in July.
London's benchmark Brent crude for October delivery fell 30 cents, 0.4 percent, to $ 73.91 a barrel by 03:25 GMT, which was up 1.8 percent in the previous session.
US benchmark WTI fell 37 cents, 0.5 percent, to reach $ 68.39 a barrel after falling nearly 2 percent on Tuesday.
The Brent crude fell more than 6 percent in July, while US crude fell nearly 7 percent, the biggest monthly drop for record highs since July 2016.
Data from the US Petroleum Institute showed an increase of 5.6 million barrels in crude oil inventories in the United States last week, while a Reuter's poll expected 2.8 million barrels to fall.
The US Energy Information Administration is expected to release its inventory data on Wednesday.
A Reuter's poll showed that oil prices are likely to remain largely unchanged this year and the next year too as OPEC and the United States increase output to meet the rising demand from Asia that to help the offset supply disruptions.
OPEC production in July reached its highest level in 2018.
The impending US sanctions have already begun to limit Iran's exports, with buyers from its biggest Asian customers cutting imports to their lowest level in seven months in June.
