BRENT crude oil fell below $63 yesterday, after US crude inventories rose unexpectedly, a sign that the global oversupply is unlikely to diminish in the near term.
Official stocks data largely confirmed information from the American Petroleum Institute on Tuesday, which said crude stocks increased by 1.9m barrels, a jump that analysts were not expecting.
Meanwhile, Organisation of Petroleum Exporting Countries (Opec) nations are continuing to keep supply levels up, while the market prepares to welcome Iranian supplies back.
Carsten Fritsch, analyst at Commerzbank, said: “The oil market is being literally flooded with Opec crude oil at present.”
The deadline for a nuclear accord between Iran and various world powers has been extended until 7 July.
However, while a deal will not signal an immediate reopening of supply channels from the Middle Eastern country Malcolm Graham-Wood at HydroCarbon Capital, said yesterday that the market should “expect to see Iranian tankers starting their engines before long”.