WASHINGTON (dpa-AFX) - Crude oil futures failed to rally Thursday after the International Energy Agency's (IEA) warning that the world's oil supply cushion 'might be stretched to the limit' due to production losses.
'Rising production from Middle East Gulf countries and Russia, welcome though it is, comes at the expense of the world's spare capacity cushion, which might be stretched to the limit,' the energy watchdog said in its monthly report.
'This vulnerability currently underpins oil prices and seems likely to continue doing so,' the IEA added.
On Wednesday, the Energy Information Administration reporting that domestic crude supplies plunged by 12.6 million barrels for the week ended July 6. The American Petroleum Institute on Tuesday reported a drop of 6.8 million barrels.
Still, oil prices tumbled the most in a year amid a strong dollar and increased Libyan output.
Today, was down 5 cents to $70.33 a barrel.
Copyright RTT News/dpa-AFX