Oil futures were down in early trading hours on Thursday following an unexpected increase in crude supplies in the US.
The US West Texas Intermediate crude contracts eased 0.57 percent to $67.82 per barrel as of 10:00 GMT. Meanwhile, Brent futures were down 0.19 percent at $75.35 a barrel.
The build in inventories is not only bearish for crude benchmarks, but news also fuelled speculation about potential reduction on output cuts by the Organisation of the Petroleum Exporting Countries and Russia.
According to the American Petroleum Institute, crude supplies increased by 1 million barrels in the week ended May 25 to 434.9 million barrels. US production is currently standing at 10.73 million bpd, close to Russia - the world’s largest oil producer - with 11 million bpd.
OPEC and Russia might begin to increase their crude production in the second-half of 2018 by 1 million barrels per day, which would leave output cuts at 800,000 barrels per day. The move is expected to avoid excess in demand due to expected reductions in Venezuela and Iran.
OPEC and non-OPEC producers will gather in Vienna on June 22 to discuss the future of production cuts. Any signs that the cartel and its allies will move forward with an output increase would certainly weigh hard on prices.