Mubasher: Oil futures fell on Thursday, extending its declines from the preceding session, driven by a surge in US crude stockpiles and weak demand from refineries, according to Reuters.

At 7:08 am GMT, US Nymex crude futures fell by 0.81% to $60.92 per barrel, while international benchmark Brent futures dropped by 0.93% to $70.33 pb. On Wednesday, oil prices dropped by nearly 2%.

“Rising inventories and a slowdown with refined product demand could suggest we could see further pressure [on oil markets],” futures brokerage OANDA senior analyst Edward Moya was quoted by Reuters.

US crude inventories climbed by 4.7 million barrels in the week ended 17 May to 476.8 million barrels, hitting their highest level since July 2017, the Energy Information Administration (EIA).

In addition to weak demand from refineries, the build in commercial inventories also came on the back of planned sales of US strategic petroleum reserves (SPR) into the commercial market.

US oil output rose by 100,000 barrels per day (bpd) to 12.2 million bpd, sending production near its peak of 12,3 million bpd hit last month.

Weighing also on crude prices were worries regarding a slowdown in oil demand growth against the backdrop of a trade conflict between the US and China which threatens global economic expansion, Saxo Bank commodity strategy head Ole Hansen was cited by Reuters.

At the other end of the spectrum, the escalating political tension between the US and Iran, as well as the supply restraints in place led by Organization of the Petroleum Exporting Countries (OPEC) gave some support to crude prices.

“Large but opposing forces have kept Brent in a $70-$75 per barrel range in recent weeks,” a note by Morgan Stanley was quoted by the news agency.