* U.S. crude stockpiles slump after a surge in exports -EIA
* Militants attack oil wells in Iraq, production unaffected
By Jessica Jaganathan
SINGAPORE, May 6 (Reuters) - Oil prices fell on Thursday as
gasoline inventories in the United States, the world's largest
oil consumer, rose for a fifth consecutive week although a draw
in crude stockpiles helped to underpin prices.
Brent crude oil LCOc1 futures fell by 16 cents, or 0.2%,
to $68.80 barrel by 0123 GMT, and U.S. West Texas Intermediate
(WTI) crude CLc1 futures dropped by 20 cents, or 0.3%, to
$65.43 a barrel.
Both Brent and U.S. crude futures hit their highest since
mid-March on Wednesday before retreating. The $70-per-barrel
mark has acted as a barrier for the market since Brent broke
just above that level in March, with investors unwilling to push
oil higher as COVID-19 cases increase in parts of the world.
"Oil prices fell in response to U.S. gasoline stockpiles
rising," analysts from Commonwealth Bank of Australia said in a
note. They said, however, the drop in prices is unwarranted as
U.S. demand remains strong.
U.S. crude stocks fell last week more than expected as
refining output rose and exports surged, the Energy Information
Administration said on Wednesday. S/EIA
Crude inventories fell by 8 million barrels in the week to
April 30 to 485.1 million barrels, compared with expectations in
a Reuters poll for a 2.3 million-barrel drop.
U.S. gasoline stocks rose by 737,000 barrels in the week,
the EIA said, against a forecast for 652,000-barrel draw.
Pandemic-related restrictions in the United States and parts
of Europe are easing, but infections are still on the rise in
major crude oil importers India and Japan, weighing on prices.
Meanwhile, militants using bombs attacked two oil wells at
an oilfield close to the northern Iraqi city of Kirkuk on
Wednesday, killing at least one policeman and setting off fires,
the country's oil ministry said.
Industry sources said the attack had not affected output. An
oil ministry statement did not comment on production.