USA crude futures slumped last month by the most in two years, and traded just below $68 a barrel on Wednesday on the New York Mercantile Exchange. West Texas Intermediate, the U.S. benchmark for the price of oil, was down 1.51 per cent to $67.72 per barrel.
The EIA now estimates that the June production would be 10.900 million bpd, but the revision to the May figure suggests that the output for June could be lower than the expected 10.9 million bpd, according to Bloomberg.
The price for Brent crude oil, the global benchmark for the price of oil, was down 1.75 per cent as of 9:20 a.m. EDT to $72.91 per barrel.
Saudi Arabia, Russia, Kuwait and the United Arab Emirates have increased production to help to compensate for an anticipated shortfall in Iranian crude supplies once planned US sanctions take effect later this year.
USA crude inventories rose by 3.8 million barrels last week as exports declined, creating the largest increase in Gulf Coast stocks since March, the Energy Information Administration said.
Futures in NY dropped 1.6 percent on Wednesday.
Investors added the most money in July to the United States Oil Fund, the biggest exchange-traded fund tracking crude prices, since August 2017.
Oil had been moving lower all session on the back of reports OPEC and Russian crude oil production rose during July, while a larger than expected DOE inventory build confirmed the API reports from Tuesday.More news: Corbyn tells Labour anti-Semites `you have no place in our movement´
More news: McIlroy lurks behind leader Thomas at WGC-Bridgestone Invitational
More news: Child dies after being thrown into river by mother
It was gathered that the Arabic nation's production increased by 230,000 barrels daily in July to 10.65 million barrels per day. West Texas Intermediate, the US benchmark for the price of oil, was down 0.1 percent to $68.89 per barrel.
The net imports averaged 6.44 million barrels per day last week, up by 1.35 million barrels per day from the previous week.
USA nonfarm payrolls rose in July but the US trade deficit recorded its biggest increase in more than 1-1/2 years in June as the boost to exports from soybean shipments faded and higher oil prices lifted the import bill.
"Unipec saying they won't buy US crude and China saying they won't comply with Iran sanctions are bearish", Jakob from Petromatrix said.
Despite the decline, China "continues to hold the mantle as the leading Asian destination for USA crude", said the firm's commodity research director, Matt Smith.
Trump has turned up pressure on China for trade concessions by proposing a higher 25 percent tariff on $200 billion of Chinese imports. "This could severely dent the competitiveness of USA oil and derivatives in the Chinese market", said Abhishek Kumar, senior energy analyst at Interfax Energy.
USA crude oil imports averaged 7.75 million barrels per day last week, maintaining the levels of the previous week.