Oil prices ticked lower in Asian trade on Thursday trade, pressured by a surprise build in United States fuel stockpiles and price cuts by Saudi Arabia for July crude deliveries to Asia.
By 3:05 pm AEST (5:05 am GMT), Brent crude futures fell 18 cents, or 0.3%, to US$64.68 per barrel, while West Texas Intermediate (WTI) crude dropped 30 cents, or 0.5%, to US$62.55.
The losses followed a near 1% decline in the previous session, after official data showed an unexpected rise in U.S. gasoline and distillate inventories, indicating subdued demand in the world’s largest economy.
Data from the U.S. Energy Information Administration revealed gasoline and diesel stocks rose more than expected, rising by 5.2 million barrels versus a 1.5 million-barrel build expected.
Meanwhile, data revealed a 4.3 million barrel draw in crude oil inventories - far above analyst forecasts of a 900,000-barrel decrease.
Adding further pressure, Saudi Arabia's state firm Aramco, the world's leading oil exporter, reduced its official selling price for July-loading crude to Asia.
The cuts brought prices to near four-year lows and came just days after Organisation of the Petroleum Exporting Countries (OPEC+) announced it would raise output by 411,000 barrels per day starting in July.
The price reduction is widely seen as part of a strategic move by Saudi Arabia and Russia - leaders within the OPEC+ alliance - to regain market share and curb overproduction by some member states, Reuters reported.
Elsewhere, tensions continued to simmer across global trade corridors. Canada prepared retaliatory measures while the European Union reported progress in trade negotiations, as new U.S. tariffs on metals disrupted global economic relations and added urgency to ongoing discussions with Washington.
