Oil falls 1.6% on output in US

The price of crude oil tumbled on world markets on a report that US production surged and fuel inventories climbed, but signs that Opec’s plan to drain a global glut is taking hold eased the losses.

Prices fell as much as 1.6% in New York after the Energy Information Administration (EIA) said American oil drillers pumped 11.9 million barrels a day last week and gasoline stockpiles soared.