Oil prices dip on record U.S. output, but global market tense

Oil prices fell on Thursday, pulled down by record U.S. crude production that led to a surge in stockpiles.

Outside the United States, however, oil markets remained tense as exemptions to U.S. sanctions on Iran expired, a political crisis in Venezuela escalates, and as producer club OPEC keeps withholding supply.

Spot Brent crude oil futures were at $71.91 per barrel at 0239 GMT, 27 cents, or 0.4 percent, below their last close.

U.S. West Texas Intermediate (WTI) crude futures were down 19 cents, or 0.3 percent, at $63.41 per barrel.

"Crude oil prices fell sharply as stockpiles in the U.S. rose to their highest level since 2017," ANZ bank said on Thursday.

"This comes as U.S. refineries head into the spring maintenance period, stoking fears that crude oil demand will be soft and stockpiles will continue to rise," it added.

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