The price of Brent crude fell in early trading on Wednesday due to a strengthening US dollar, rebounding from three year lows last week, and market projections over future supply, reported Reuters.
Brent crude dropped 0.6% to $64.9 with analysts suggesting a further one dollar decline is quite possible when monitoring current patterns.
Accelerating US production which has exceeded 10mn barrels per day, surpassing oil giant Saudi Arabia’s output, and now has leading oil pumper Russia in its sights, is also generating a bearish sentiment in the market.
The US Energy Information Administration is due to publish its production data tomorrow and this is likely to show a spike of 1.3mn barrels in oil inventories over the course of last week, according to a Reuters poll.
Nevertheless, analysts believe global demand is presently helping to support prices alongside the production cuts led by Saudi Arabia and Russia.