"For now though, the gains in USA supply are prevailing in shaping sentiment in the oil market, other analysts said".
Crude and gasoline futures slid in NY on Wednesday. Market expects the Fed to raise interest rates three or four times this year, if USA inflation starts to take off, especially as growth is set to get another boost from the Trump administration's tax cuts and spending plans. Helping to feed the gain in crude stockpiles was yet another increase in domestic crude output to yet another record.
"That its oil market is dominated by a large number of uncoordinated, private-sector firms, many of whom benefit from lower production costs than producers elsewhere, means the USA will remain a major player for the foreseeable future".
Oil prices fell for a third day on Thursday, dropping towards USD 64 a barrel as rising US inventories, record output and a stronger dollar outweighed high OPEC compliance with its supply-cutting deal.
Oil is poised for its first monthly decline in half a year as January's rally fades on growing fears over booming USA shale supply. While output curbs by OPEC, a supply disruption in Libya and turmoil in Venezuela have helped underpin prices, expanding US shale production continues to haunt the market.
Brent, the global benchmark, settled at US$63.83 (RM250.26) a barrel, down 90 cents, or 1.4 per cent. Total volume traded was about 18 percent above the 100-day average. Front-month Brent futures traded at a $3.68 premium to April WTI.
Oil recovered some of its losses during the session as the dollar weakened.
Futures in NY slipped 0.2 percent, putting them on course for a 4.2 percent drop this week. Production from the 14 members slipped 80 000 barrels a day to 32.28 million barrels per day in February, according to a Bloomberg News survey of analysts, oil companies and ship-tracking data.More news: Oscars 2018: 'Moonlight' to Be Presented With Best Picture Award Again
Oil prices have been affected by "knock-on effects from other markets", said Harry Tchilinguirian, head of commodity markets strategy at BNP Paribas SA in London.
The U.S. Energy Information Administration report on oil inventories is due to be released on Wednesday at 10:30am.
Gasoline futures fell 1.5 percent to settle at $1.8964 a gallon. Crude oil demand is highly correlated to economic growth.
"We got a little extended on the upside - we had a price advance of more than $6 a barrel in crude in less than two weeks", said Jim Ritterbusch, president of Chicago-based energy advisory firm Ritterbusch & Associates.
Oil output in the United Arab Emirates slumped the most in a year last month as maintenance at fields in the Arabian Gulf reduced supplies from the Middle East's fourth-biggest crude producer.
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