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Oil edges lower as U.S. inventory build stokes supply fears

Brent crude futures fell 10 cents, or 0.2%, to $42.98 a barrel by 0417 GMT. U.S. West Texas Intermediate crude futures dropped 12 cents, or 0.3%, to $40.50 a barrel, holding to the narrow range of the past few weeks.

U.S. crude oil stockpiles rose last week, against expectations for a draw, although gasoline and distillate inventories fell more than expected, data from industry group the American Petroleum Institute showed.

Adding to pressure, the U.S. Energy Information Administration said on Tuesday that U.S. crude oil production is expected to fall by 600,000 barrels per day in 2020, a smaller decline than the 670,000 bpd it forecast previously.

However, it also expected global oil demand to recover through the end of 2021.

Abu Dhabi National Oil Co plans to boost oil exports in August, the first signal that OPEC and its allies, together known as OPEC+, are preparing to ease record oil output cuts next month, as per sources. Key ministers in the OPEC+ grouping are due to hold talks next week.

Meanwhile, the U.S. coronavirus outbreak crossed a grim milestone of over 3 million confirmed cases on Tuesday as more states reported record numbers of new infections.

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