Oil climbs for second day, US crude hits two-week high

Oil prices widened their gains in American trade on Thursday for the second session, with US crude hitting two-week highs after US commercial stocks fell past forecasts, while gains are curbed by record-high US output, and weaker Chinese demand. 

As of 13:05 GMT, US crude rose to $65.05 a barrel from the opening of $66.59, while Brent climbed to $76.85 a barrel from the opening of $76.54. 

US crude rose 0.9% yesterday, marking a two-week high at $66.86 a barrel, while Brent rose 1.5%, the second profit in the last three days. 

The Energy Information Administration reported a drop of 4.1 million barrels last week, passing forecasts of a 1.4 million decline. 

Total stocks have now fallen to over one-month lows, in a positive sign for US demand. 

US production rose 100 thousand bpd to a total of 10.90 million bpd, yet another record high. 

US output is up 29% from mid-2016 levels, passing Saudi Arabia's 10 million bpd, and nearing Russia's 11.1 million bpd. 

In China, refinery activities fell to 11.93 million bpd in May from 12.06 million bpd in April, a sign of slower local demand and consumption.