US oil production falls

The EIA's weekly US Petroleum Report, released earlier today, shows the amount of crude oil in commercial storage tanks decreased by about 2.4 million barrels to 482.2 million. This was the third consecutive fall and was more than analysts' expectations of a 1.1 million barrel fall.

Last week's fall in US weekly oil stocks all but confirms that April's highs marked the peak. What's more, US oil production declined by the most significant amount in almost a year and demand picked up slightly. 

"Oil prices have ticked up in response to today's data. However, stocks are still enormous and the falls in US oil production are likely to be reversed later this year as higher prices tempt more firms to restart drilling and fracking operations. This should limit the upside for prices over the rest of this year." - says Capital Economics