FXStreet notes that the US increased its oil production for the first time in 14 weeks and as the amount of oil stored is also high, and strategists at OCBC Bank expect oil prices to remain depressed in the next weeks. 

“Crude oil production in the US rose from 10.5mbpd in the week of 12 June to 11mbpd in the week of 19 June, in a sign that prices are now healthy enough to encourage the return of marginal producers. Data from Baker Hughes also showed that the crude oil rotary rig count in the US only decreased by one to 188 in the week of 26 June, suggesting that a bottom is high likely around the corner.” 

“The market appears to be balancing itself, with the high prices encouraging a supply comeback in the US. This is in addition to the high amount of oil stock around the world, notably in the US.” 

“We continue to maintain our view that oil may have reached its peak in the short-run and prices are likely to consolidate over the next few weeks.”