US oil prices dip on mixed inventory report

[NEW YORK] Oil prices in New York dipped on Wednesday following a mixed US petroleum supply report that showed lower crude supplies but a rise in gasoline stocks.

US benchmark West Texas Intermediate for delivery in July slipped five cents to US$59.92 a barrel on the New York Mercantile Exchange.

European benchmark Brent oil for August delivery added 17 cents at US$63.87 a barrel in London.

Commercial oil stocks in the US fell by 2.7 million barrels in the week ending June 12, marking the seventh straight weekly decline, according to data from the US Department of Energy.

However, crude supplies at the closely watched trading hub in Cushing, Oklahoma, rose by 100,000 barrels.

The data also showed US oil production at 9.59 million barrels per day, down a scant 21,000 barrels a day from last week's record high.

Also, gasoline stocks jumped by 500,000 barrels in a rise that surprised many experts.

Higher gasoline supplies "took the market off guard," said John Kilduff, founding partner at hedge fund Again Capital.

"Overall, the report undermines the recent rally, particularly the gasoline story, and generates some profit taking," Mr Kilduff said.

AFP