New York -Crude oil prices fell Wednesday after the weekly US oil report showed a rise in US crude output, against expectations that producers were pulling back.

US benchmark West Texas Intermediate for July delivery fell $1.62 to $59.64 a barrel in New York trade.

In London, Brent crude for July lost $1.69 to $63.80 a barrel.

Signs that global output is not falling much despite the crude glut pressured both markets. The Saudi-led OPEC cartel, set to meet in Vienna on Friday, has indicated it does not plan to reduce production.

Iran, traders worry, could inject another million barrels a day into the market if it reaches a deal soon on its nuclear programs that would lead to a lift of sanctions.

And the United States is still producing nearly 9.6 million barrels a day, 1.2 million above a year ago, despite the pressure from low prices on high-cost shale oil drillers.

“With Saudi Arabia keeping its production levels above 10 million barrels a day, Russian levels running 10 mbd, the Iraqis pushing their production above four mbd and the US near a four-decade high, this excess supply, which put prices at a six year low, still hasn’t been taken care of,” he said.