US crude dips below $64 ahead of EIA inventory report

US crude dipped below $64 a barrel on Thursday amid expectations of resumed strength in US output, while traders await the EIA crude inventory report later today. 

As of 13:55 GMT, US crude fell to $63.88 a barrel from the opening of $64.09, with an intraday high at $64.32, and a low at $63.83. 

US crude rose 0.3% yesterday, resuming the gains that were stopped on profit-taking after hitting three-year highs at $64.87. 

In initial data, the American Petroleum Institute reported a drop of 5.1 million barrels in US crude stocks in the week ending January 12, passing expectations of a 2.9M drop. 

According to the data, total stocks have fallen to 439 million barrels, the lowest since the week ending February 20, 2015. 

Now traders await the official report from the Energy Information Administration, expected to a show a drawdown of 1.4 million barrels, which would be the ninth in a row. 

As for US output, it fell last week by 290 thousand bpd, the second weekly decline in three and the largest dip since October, with total production now standing at 9.5 million barrels, with expectations for it to rise anew as drilling activity climbs.