U.S. Oil Production Resumes Decline - EIA
U.S. oil production has resumed its decline after rising last week, dropping by 29,000 bpd, according to the EIA's weekly oil storage report. The agency also reported a draw in U.S. oil stockpiles for the fourth consecutive week, falling by 933,000 barrels to a total of 531.5 million barrels.
WTI was down $0.20 to $48.29/bbl at 10:32 am CST, and Brent was down $0.51 to $49.32/bbl.
Last week, a series of unexpected supply disruptions in Venezuela, Libya, Nigeria and Canada, as well as a weaker dollar, helped push oil prices to fresh 2016 highs.
However, as Reuters report, the upcoming vote on whether Britain will leave the EU is dominating currency markets globally. Investors are concerned that if Britain votes to exit the EU, the bloc could enter into a recession that could weaken oil demand.
Earlier this week, the IEA said in its monthly report that it expects the oil market to move toward balance in 2H16, and earlier Wednesday Goldman Sachs said it expects the oil market recovery to stall as production resumes after temporary supply disruptions.