WTI Oil drops to three-week low ahead of Baker Hughes report

Oil prices in the US dropped to a three-week low of $52.52 ahead of the Baker Hughes report, which could show more rigs came online in the US.

WTI oil currently trades around $52.72/barrel. A combination of the bearish oil inventory report and a strong US dollar saw oil drop from $53.77 to $52.72 on Thursday.

The data released by the US Energy Information Administration (EIA) showed oil inventories rose to a historical high last week, increasing by 1.5 million barrels to 520.2 million barrels. Domestic oil production rose above 9 million barrels for the second week.

The rising oil output has overshadowed OPEC and non-OPEC output cuts. The bearish Baker Hughes report could trigger further sell-off in the oil prices.