– This is the script of CNBC's news report for China's CCTV on June 4, Thursday.
Welcome to CNBC Business Daily, I'm Qian Chen.
U.S. crude futures closed down $1.62, or 2.64 percent, at $59.64 a barrel. Front-month Brent futures fell $1.61, or 2.4 percent, to $63.90 a barrel.
Glum sentiment ahead of Friday's meeting of the Organization of the Petroleum Exporting Countries also weighed on the market. OPEC, which pumps more than a third of the world's oil, is expected to reject any calls for output cuts and it instead continue to produce about 2 million barrels per day above demand.
[BOB DUDLEY, BP CEO] "I think there are different parts of OPEC in terms of the prosperities of the different countries. And clearly some of the OPEC countries are bound and determined to stay on a path that they can afford more. So I think there's probably lots of debate going on inside of OPEC. I think they have a path. I think it is based on just fundamental economic principles that - so I would expect them to stay on the course they're on."
On the data front, U.S. crude inventories fell 1.95 million barrels last week, more than the 1.7 million forecast by analysts in a Reuters poll, a report from the government-run Energy Information Administration showed.
However, traders and investors ignored a fifth straight weekly decline in U.S. crude stockpiles to focus instead on a big build in distillates, including diesel, as the peak season for U.S. road travel got under way.
Distillate stockpiles, which included diesel and heating oil, rose by 3.8 million barrels, almost four times above the 1.1-million-barrel build forecast.
[JONATHAN BARRATT, Ayers Alliance Securities] "What I actually do feel is the capitol hill is providing a lot of infrastructure, by the way reserves and cash, to that industry to keep it alive. Remember, the cash cost of production from shale is a lot higher, running around 65-70 dollars a barrel, so we would anticipate production from that area would slow down, but I think capitol hill actually continues to prime it, I'm gonna think that industry is stay relatively rock solid and continue to produce."
Meanwhile, Iran is expected to reduce its stockpile of low enriched uranium to the levels required under an interim nuclear deal, by the June 30 deadline. However, once sanctions are eased, the market price of oil will be under greater pressure from the oversupply.
CNBC's Qian Chen, reporting from Singapore.