Crude palm oil futures gain 0.27%

Gulf of Mexico production was down 99,000 bpd in April and down another 75,000 bpd in May

US West Texas Intermediate (WTI) crude futures fell US$1.10 to settle at US$67.66 a barrel, a 1.6 per cent loss.

The unexpected build in the U.S. crude stockpiles, as published by the Energy Information Administration (EIA) on Wednesday, keeps the sentiment around the barrel of WTI undermined. The price for Brent crude oil, the global benchmark, was up 0.23 percent to $73.62 per barrel as of 9:15 a.m. EDT.

Traders are also watching rising output from OPEC and its allies following their June accord to increase supply, having faced acute pressure from the U.S. President, Donald Trump, to calm oil prices.

U.S. Energy Information Administration said in a weekly report on Wednesday that the country's commercial crude inventories rose by 3.8 million barrels in the week through July 27, higher than market estimates of a decrease of 2.8 million barrels.

Futures in NY were little changed, following a 3.5-percent slide in the past two sessions.

On Tuesday, data released by the American Petroleum Institute showed US crude stockpiles to have risen by 5.59 million barrels in the week, compared to analyst expectations for a 2.8 million-barrel drawdown.

Escalating trade war could result in a notable drop in demand for crude oil.

The market's expectation was 2.8 million barrels of crude oil draw.

While data from the Energy Information Administration showed US crude inventories rose 3.8 million barrels last week, Saudi Arabia pumped near-record volumes in July and Russian Federation increased its crude production to levels not seen since it joined OPEC in a coordinated output cut two years ago.

Saudi Arabia's production increased by 230,000 barrels a day in July to 10.65 million barrels per day. That's equivalent to about 11.21 million barrels a day, a jump of 140,000 from a month earlier, according to Bloomberg calculations based on the ministry's data.

US crude ended the week down 0.4 percent, while Brent has fallen 1.5 percent in the week so far.

Trade tensions "continue to weigh on the broader markets and obviously commodities", said Matt Sallee, who helps manage $16 billion at Tortoise Capital Advisors LLC in Leawood, Kansas.

The EIA also reported US crude exports posted the biggest decline on record last week, while USA crude production fell for the first time since February.

Oil prices are also feeling the effects of tensions over global trade, which could cause economic growth to slow.

USA crude oil exports to China dropped by roughly 42% in July as the appetite for light sweet US crude declines in the Asian giant ahead of the start of 25% tariffs on USA oil imports, Kallanish Energy learns.

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