Forecast world production of crude oil and other liquids in 2017 and 2018 was revised slightly downward in the June edition of EIA's Short-Term Energy Outlook (STEO), which was issued after the May 25 announcement by the Organization of the Petroleum Exporting Countries (OPEC) of an extension to production cuts that were originally set to end this month. "We're seeing this reflected in the rising rig count and increases in 2017 investment plans".
Some US shale producers claim they can produce oil profitably with prices well below $50 per barrel or even $45 per barrel; the oil market is likely to put those claims to the test.
U.S. West Texas Intermediate crude futures for July dropped 54 cents, or 1.2 per cent, to settle at $44.20 per barrel, the lowest close since November 14.
Libya, where production was hampered by the civil war, political divides, and oil terminal blockades will now increase production further to reach 1 million barrels per day by the end of next month.
Overabundance of oil has suppressed prices for almost three years.
Investment bank Goldman Sachs said if the USA rig count holds, fourth-quarter domestic oil production would rise 770,000 bpd from the same period a year ago in the Permian, Eagle Ford, Bakken and Niobrara shale oilfields.
Traders are saying that the main factor driving prices lower is a steady rise in USA production undermining the OPEC-led effort to tighten the market.
MoS External Affairs meets Chinese Foreign Minister Wang Yi
Earlier in the day, Singh said besides cooperating on financial issues, the BRICS agenda had witnessed steady expansion. Beijing will host this year's BRICS summit at Xiamen on the south-eastern coast of China in September.
Of the two Opec states not included in the deal, some temporary political deals have allowed Libya's output to top 800,000 bpd for the first time since 2014 and Nigeria has also bounced back.
Eight prominent hedge funds have reduced the size of their positions in 10 of the top shale firms in the Permian, the largest USA oil field, by over $400 million, concerned that producers are pumping oil so fast they will undo the recovery.
An interesting battle between the Opec and shale producers is on and the crude markets continue to be faced with real headwinds.
However, according to senior market analyst AxiTrader Greg McKenna, the number of oil rigs in the U.S. increased 22 consecutive weeks.
"Inventory levels remain stubbornly high", he said.
As stated earlier the Russian Minister of energy Alexander Novak, Russia will adjust the forecasts for production in 2017 4 million tons, to 547 million tonnes. The figures given vary, but most was said about the excess supply in the amount of 1-1,5 million barrels. a day.
Saudi Arabia reported that crude exports fell to 7.006mn bpd for April from 7.232mn the previous month which provided some net support for crude, although crude output rose slightly on the month.