The International Energy Agency warned that the supply of oil could tighten in the coming years due to fall in investment, the oil market remains considerably oversupplied in the short term, as the inventory data published by the API after close of trading yesterday evening confirmed once again. The figure show that US crude oil stocks increased by 6.3 million barrels last week. 

The US Energy Information Administration (EIA) has revised its estimate for US crude oil production in 2016 down by 90,000 barrels per day and now envisages a decrease of 520,000 barrels per day.

The crude oil production is likely to hit a low of a good 8.5 million barrels per day in September 2016, says Commerzbank. This year's production estimate was revised slightly upwards, on the other hand, because oil production in August, September and October turned out to be somewhat higher than anticipated. This argues against any price recovery this year but suggests that we will see higher prices next year. The EIA made only marginal changes to its demand estimates.