Oil falls amid supply glut concerns

Oil drilling rigs

Oil prices declined today, Aug. 13, after the International Energy Agency raised its forecast for global supply and following data showing an increase in US crude inventories.

Brent crude slipped 0.74%, or 49 cents, to $65.63 a barrel by the end of the session. US West Texas Intermediate (WTI) crude fell 0.82%, or 52 cents, to $62.65 a barrel.

The International Energy Agency said in its monthly oil market report that it expects global refining operations to rise to a record 85.6 million barrels per day in August, with annual growth of 1.6 million barrels per day in the third quarter, significantly higher than the average annual increase of 130,000 barrels per day in the first half.

Data released today by the US Energy Information Administration revealed that US crude inventories rose by three million barrels last week, contrary to expectations of a one million-barrel decrease.

The announcements coincide with anticipation of a bilateral meeting scheduled for Aug. 15 between US President Donald Trump and his Russian counterpart Vladimir Putin to discuss ways to achieve peace in Ukraine, a move that could ease Western sanctions on Moscow.