Oil edges up towards data on reserves and production in U.S

By Azernews

By Sara Israfilbayova

Oil prices climbed up on June 16 but remained near six-month lows, held down by an ongoing supply overhang that persists despite an OPEC-led effort to cut production and prop up crude markets.

Brent crude futures are at $46.98 per barrel, 0.13 percent, above their last settlement. U.S. West Texas Intermediate (WTI) crude futures are at $44.49 per barrel, up 0.07 percent.

Rising U.S. oil output, particularly from shale drillers, is contributing to the ineffectiveness of the OPEC-led cuts, according to Reuters.

"Oil is unlikely to find solace into the weekend either, with tonight's Baker Hughes Rig Count expected to deliver its now weekly increase of operational rigs," said Jeffrey Halley, senior market analyst at futures brokerage OANDA in Singapore.

Traders said the slight increases were a result of a partial export halt in Libya.

Libyan output will reach 900,000 barrels a day within days, National Oil Co. said on its website, citing Chairman Mustafa Sanalla. OPEC production jumped last month as Libya and Nigeria revived supply halted by attacks and political crises.

Meanwhile, data from the U.S. Energy Information Administration (EIA) this week showing growing gasoline stocks and shaky demand, despite the peak summer driving season, sent prices tumbling.

In the U.S., which is not participating in any deal to reduce production, oil output has risen more than 10 percent in the past year to 9.3 million bpd. The EIA expects the figure to rise above 10 million bpd in 2018.

In addition, traders continue to respond to the information of the June report of the International Energy Agency (IEA).

Crude output from OPEC nations rose by 290,000 bpd in May to a 2017 high of 32.08 million barrels per day, according to the EIA.

However, prices for both benchmarks are still down by around 13 percent since late May, when producers led by OPEC extended a pledge to cut production by 1.8 million barrels per day by an extra nine months until the end of the first quarter of 2018.