Oil declines on high US inventories, oversupply concerns

Oil prices dipped on Friday as a rise in the US inventories added concerns about oversupply.

By 07:00 pm Riyadh local time, Brent Crude futures were down 6.20 percent to $58.72 a barrel, while WTI crude futures were down by 6.77 percent to $50.93 a barrel.

The US Energy Information Administration (EIA) data on Wednesday showed that the US crude oil inventories rose by 4.9 million barrels to 446.91 million barrels last week, its highest level since December.

“As long as there's lingering uncertainty around how much OPEC will reduce production no clear trend will be able to form,” said Konstantinos Anthis, Head of Research at ADS Securities in his daily report.