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RIYADH: Oil extended losses on Wednesday as concerns over global economic headwinds deepened, erasing the price gains booked after ¶¶Òõ¶ÌÊÓƵ’s surprise weekend pledge to deepen output cuts. 

Brent crude futures were down 53 cents, or 0.69 percent, at $75.76 a barrel at 09:10 a.m. Saudi time. US West Texas Intermediate crude futures fell 48 cents, or 0.67 percent, to $71.26 a barrel. 

Both benchmarks had jumped more than $1 on Monday, boosted by ¶¶Òõ¶ÌÊÓƵ’s decision over the weekend to reduce output by 1 million barrels per day to 9 million bpd in July. 

China’s May crude oil imports climb to third-highest monthly level on record 

China’s crude oil imports in May rose to the third-highest monthly level on record, customs data showed on Wednesday, as refiners built inventories and stepped up operations after maintenance in April. 

Crude imports in May totaled 51.44 million tons, or 12.11 million bpd, according to data from the General Administration of Customs. That was up 12.2 percent from the 10.79 million bpd of crude imported in May last year. 

Shipments to the world’s largest oil importer increased significantly month-on-month, up 17.4 percent on April’s 10.32 million bpd. 

Despite a mixed macroeconomic picture, a build-up in inventories has helped to sustain crude import demand. 

China imported 10.64 million tons of natural gas in May, up 17.3 percent from 9.07 million tons a year ago and representing the highest monthly level since January 2022. 

Refined fuel exports rose 49.5 percent to 4.89 million tons from May last year. 

US 2023 oil output to rise more than previously expected: EIA 

US crude oil production this year will rise faster, and demand increases will cool compared to prior expectations, the US Energy Information Administration said on Tuesday. 

EIA issued the new outlook after the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, extended output cuts through 2024.  

The move by the group will slightly reduce global oil inventories in each of the next five quarters and boost global oil prices in late-2023 and early-2024, the agency predicted in its Short-Term Energy Outlook. 

Brent crude prices will average $79.54 a barrel in 2023, about 1 percent higher than previously forecast, and US West Texas Intermediate crude prices will average $74.60, a 1.3 percent increase from EIA’s prior estimate. 

US total petroleum consumption will rise only by 100,000 bpd to 20.4 million bpd this year, compared with an estimated gain of 200,000 bpd in the May forecast, it said. 

While services and travel should boost gasoline and jet fuel demand growth this year, diesel fuel consumption is set to decline as manufacturing becomes less of a factor in the economy, the agency said. 

EIA projects US crude oil production will climb by 720,000 bpd to 12.61 million bpd this year, above a prior forecast calling for a gain of 640,000 bpd. 

US oil production gains have slowed due to investor demand for increases in dividends and share buybacks over capital spending. But US output is still set to hit annual production records in 2023 and 2024, EIA said. 

(With input from Reuters)