Kuwait Times - - BUSINESS -

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.

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