Oil prices declined for a second consecutive month in June, with both Brent and WTI falling by 5% to $47.9/bbl and $46.0/bbl, respectively.
Sentiment remains resoundingly bearish, despite a recent 8-day bull run that saw Brent approach the symbolic $50 level.
US crude production continues to increase, rising to a high of 9.35 mb/d in June, driven by shale production.
US/OECD crude stocks are not drawing down fast enough to buoy the markets.
OPEC output rose in May to 32.1 mb/d, thanks to a ramp up in Libyan and Nigerian output, while compliance fell slightly to 105%.
Markets swung into supply deficit territory in 2Q17, with the deficit expected to widen in 2H17; stock drawdowns should accelerate.