Despite massive oversupply of US inventory, the oil prices have soared more than $3 to $31 per barrel since yesterday afternoon. US crude oil stocks advanced nearly 4 million barrels in the previous week and are at 130 million barrels at present, which is higher than its usual average. U.S gasoline stocks rose by 4.6 million barrels, touching it highest level since 1990. However, US distillate stocks dropped by 1 million barrels, as a result of the recent lower temperatures and subsequently more heating demand.

Regardless of low prices and the fall in drilling activity, the U.S crude oil production grew 9.24 million barrels per day, marking it as its highest level since August 2015. The Iraqi oil minister stated that the production will be further increased by 400,000 barrels per day by the end of 2016, adding that exports from the south of Iraq had increased this month to a new record high of 3.3 million barrels per day.