Data from the Energy Information Administration showed late Wednesday that U.S. crude oil stockpiles declined by close to 13.00% from their March peak to 466.50 million barrels last week. However, total production rose by 79,000 barrels a day to 9.502 million barrels to record the highest output level since the middle of July 2015.
Oil analysts reckon the surging U.S. output is eroding efforts by the Organization of the Petroleum Exporting Countries to curb production and tighten the market. Brent crude futures for October delivery were last trading around $50.40 a barrel. Strong support exists around the $50-zone, while any move higher is likely to face resistance around $51.50 a barrel. Unless fresh catalysts emerge, the market could remain range-bound within the price band.