"Unless demand turns out to be stronger than we currently anticipate, products stocks could rise still further and threaten the whole price structure. Oil InsightFundamentally there is little doubt that the market is balancing. "Although stocks are close to topping out, they are at such elevated levels, especially for products for which demand growth is slackening, that they remain a major dampener on oil prices," the IEA said. It dropped as low as 316 rigs in the week that ended on May 27, but rose to 374 as of the week ending July 29. "Signs of increased drilling activity in the United States and strong Opec (Organisation of the Petroleum Exporting Countries) production have also had a bearish impact on prices.Oil rig countThe US oil rig count has increased for the last five weeks.

Source: The Nation Bangkok August 05, 2016 18:01 UTC