Oil prices fell again for a second day on Wednesday after reports that US crude stockpiles, the world's biggest oil consumer, jumped and signaled major producers were unlikely to change their output policies at a meeting next week.
Brent crude for May fell 74 cents (0.9%) to $85.51 a barrel. The May contract is set to expire on Thursday and the more actively traded June contract was down 68 cents (0.8%) at $84.95.
Meanwhile, US West Texas Intermediate (WTI) crude oil for May fell 64 cents (0.8%) to $80.98.
Prices have retreated this week since hitting their highest level since October last week and remain about 3% above the average closing price in the first week of March.
According to Jun Rong Yeap, IG Market Strategist in Singapore said a sharp increase in US crude oil inventories and expectations for a possible no-change by OPEC+ in its production policy next week saw oil prices lower in today's session as profit-taking accelerated following a strong rally in the mid March.
US crude oil inventories rose by 9.3 million barrels in the week ended March 22. However, gasoline stocks fell by 4.4 million barrels.
The Organization of the Petroleum Exporting Countries (OPEC) and its Russian-led allies, also known as OPEC+, will not make any changes to oil production policy until a full ministerial meeting in June.
The group will hold an online meeting of its Joint Ministerial Monitoring Committee on April 3 to review the market and the implementation of member output cuts.
Earlier this month, OPEC+ members agreed to extend their production cuts of about 2.2 million barrels a day until the end of June.
Meanwhile, Russia has ordered companies to reduce their production to comply with the target. Iraq's oil ministry said on March 18 it would reduce its exports to compensate for earlier production exceeding its quota limit.
