The Brent oil price rebounded 1% to $60.68 last night, which showed some price strength because the news flow was pretty poor. The big one was US inventories courtesy of the EIA which climbed 7.7 million barrels on the week and added to its all time high:
The production versus rig count is supportive of the market:
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I still think that we’ll see production begin to fall within three months. In the meantime The Economist makes a keen observation that could show more price weakness yet ahead: