WTI price drifts lower to near $60.75 in Friday’s early Asian session.
Oil inventories rose by 1.328 million barrels in the week ended May 16, according to the EIA.
The US and Iran will hold fresh nuclear talks on Friday.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $60.75 during the Asian trading hours on Friday. The WTI price edges lower amid concerns that global supply could outpace demand growth.
The Organization of the Petroleum Exporting Countries and its allies (OPEC+) planned to boost oil output to regain market share, which might cap the upside for the WTI price. OPEC+ has raised oil output by more than previously expected since April, with its May output likely to increase by 411,000 barrels per day. OPEC leaders are also contemplating a similar increase in July, and could bring back as much as 2.2 million barrels-per-day (bpd) of supply to the market by November, Reuters reported earlier.
The US Energy Information Administration (EIA) weekly report showed crude oil stockpiles in the US for the week ending May 16 climbed by 1.328 million barrels, compared to a rise of 3.454 million barrels in the previous week. The market consensus estimated that stocks would drop by 1.85 million barrels.
On Tuesday, the US obtained new intelligence suggesting that Israel is making preparations to strike Iranian nuclear facilities, even as US President Donald Trump has been pursuing a diplomatic deal with Tehran. It isn’t clear that Israeli leaders have made a final decision to carry out the strikes, CNN said, citing unnamed officials.
An attack by Israel would hinder any progress in those negotiations and contribute to tension in the Middle East, which provides about one-third of the world's petroleum. Traders will closely watch the next round of Iran-US talks, which will take place on Friday in Rome. Any signs of progress in nuclear talks might weigh on the WTI price.
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