Oil prices have fallen amid increased inventories of fuel, as well as due to improving industry efficiency.  

Brent crude futures LCOc1 declined 19 cents and traded at $48.23 per barrel, while the US West Texas Intermediate (WTI) crude futures CLc1 slipped 15 cents and traded at $45.93 per barrel, Reuters reported.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

A group of oil producers including Russia and the Organization of the Petroleum Exporting Countries (OPEC) agreed in November last year to reserve output of about 1.8 million barrels per day (bpd) between January this year and March next year in order to rebalance the market.

US investment bank Jefferies was quoted by the news agency as saying: "OPEC compliance with production cuts slipped to 98% in June, but more importantly output from exempt (from cutting) members Libya and Nigeria is currently about 700,000 bpd higher than at the time of the November OPEC agreement, offsetting about 60% of the OPEC cuts." 

"OPEC compliance with production cuts slipped to 98% in June."

Over the past year, oil production in the US has increased by more than 10% to 9.4 million bpd. 

Research and brokerage firm Sanford C Bernstein stated that OECD inventories are likely to finish higher during the first half of this year.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

In order to eliminate the inventory overhang the oil cartel is required to cut deeper, Bernstein added.

According to Goldman Sachs, due to increasing cost efficiency from shale drillers in the US, the crude oil price outlook remained weak.

In its latest oil market report, the International Energy Agency (IEA) said that there are two hitches this month, which are a dramatic recovery in oil production from Libya and Nigeria, and a lower rate of compliance by OPEC with its own output agreement.