Crude oil stocks at the Cushing hub, delivery point for the New York Mercantile Exchange's (NYMEX) U.S. crude contract, fell 592,000 barrels in the week to May 9, the U.S. Energy Information Administration's (EIA) data released on Wednesday showed. But total U.S. crude inventories rose 947,000 barrels to 398.5 million barrels, as domestic production hit a 28-year high of 8.43 million barrels, the EIA said.
The exclusion this week of pro-Moscow separatists from talks amongst Ukraine's interim leaders on plans to give the eastern regions greater autonomy cast doubt over moves to defuse the political crisis in Central Europe. Energy ministers from Russia and the European Union are to meet May 19 to set a date for more talks with Ukraine to end a dispute over gas prices and avoid a potential interruption of energy supplies.
Also highlighting supply worries, OPEC oil producers will need to raise output in the second half of 2014 to meet global demand as China builds its strategic reserves and stocks in industrialized countries remain low, the International Energy Agency (IEA) said on Thursday.
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