Oil prices rallied strongly in the first five months of the year to a high of about $75 a barrel, supported by supply curbs by OPEC and some non-OPEC producers including Russian Federation, an alliance known as OPEC+.
-China trade row has had a greater impact on the oil market's narrative, with the clash between the two economic titans sparking global recession worries.
Oil prices resumed their slide on Wednesday, with West Texas Intermediate crude futures (WTI) dropping more than 4 percent after USA crude inventories unexpectedly surged.
"I can't stress enough how bearish today data's was today on crude, with a massive build even in gasoline", said Tariq Zahir, founder of the oil-focused Tyche Capital Advisors fund in NY.
In an escalation of the trade tensions, Washington on May 10 increased additional tariffs on 200 billion USA dollars' worth of Chinese imports from 10 percent to 25 percent, and has threatened to raise tariffs on more Chinese imports.
President Donald Trump announced the US withdrawal from the nuclear deal with Iran in May 2018.
The EIA figures for crude oil will hardly provide any relief for prices as trade war-related concern about the global economy deepens.
Oil prices are up 16% so far this year thanks in part to the OPEC+ deal.
Warriors' owner's wife spills the tea on her interaction with Beyonce
It will bring no joy to the person you love so much if you spew hate in her name. "That kids go through this", she said. She said she was simply offering the couple drinks and was only leaning toward Jay-Z because the arena was loud.
On Wednesday, Brent and WTI hit their lowest since mid-January at $59.45 and $50.60 respectively after USA crude output reached a record high and stockpiles climbed.
USA oil futures fell below $51 a barrel on Wednesday, completing a swoon of more than 20% since late April as the Trump administration's multiple trade disputes escalated. But they have fallen from a peak above $75 in April to below $62 a barrel on concerns about demand due to a U.S.
"The addition of new US supply and its integration into the global market" would pose a "multi-year threat to the market share and revenues" of OPEC+ producers, Goldman Sachs noted.
However, outside OPEC+ supply is increasing not only in the United States. To me, that means drawing down inventories from their now elevated levels, ' Saudi energy minister Khalid al-Falih said, according to Arab News.
"To me, that means drawing down inventories from their now elevated levels", the minister was quoted as saying by Saudi newspaper Arab News on Monday.
OPEC is close to agreeing to extend an oil supply-cutting agreement beyond June, Saudi Arabia's energy minister said on Friday, though the question is how to accommodate participating non-OPEC countries.
Sentiment for oil remains dim as fresh signs emerge of a stalling global economy, with the trade war between the US and China intensifying. "Some smaller increases from Libya and Iraq fully offset the outages in Iran, helping to explain why the oil market softened in May despite the 'maximum pressure" campaign by the USA on Iran.
Signs of slowing global economic activity have increased in recent months, fueled by trade tensions between the USA and China, the world's two largest energy consumers.