Oil prices have fallen after industry data reported an increase in US crude inventory and OPEC announced a rise in production levels despite the ongoing output cuts deal.
Brent crude oil LCOc1 dropped by 45 cents a barrel to $48.27, while crude CLc1 traded 50 cents lower at $45.96, reported Reuters.
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OPEC and other exporters such as Russia have agreed to curb oil production by nearly 1.8 million barrels per day (bpd) to the end of the first quarter of 2018.
However, the oil cartel reported that output increased by 336,000bpd last month to 32.14 million bpd.
Despite OPEC and other producers curbs to production, oil stocks are near record highs in some regions of the world, while OPEC members exempted from the oil deal continue to increase production.
American Petroleum Institute data highlighted a rise of 2.8 million barrels in the US stocks in the week ending 9 June to 511.4 million.
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By GlobalDataThe US output has also jumped in the last one year by 10% to 9.3 million bpd.
The news agency reported BP stating in its benchmark Statistical Review of World Energy that global energy demand grew by 1% last year, which is below the ten-year average of 1.8%.
