Investor sentiment was hurt after data showed Libyan output increased enough to lift monthly OPEC production for the first time in 2017. Brent crude marked its fifth straight monthly decline despite the extension of OPEC-led production cuts and expectations that US inventories would consequently fall. Data from the American Petroleum Institute showed crude stockpiles fell by -8.670 million barrels during the week ended May 26th to 513.2 million barrels in storage compared to analyst expectations for a contraction of -2.500 million barrels.
The official US Energy Information Administration numbers are due Thursday, delayed by a day following Monday’s Memorial Day holiday. Brent futures for August delivery are mounting an upside rebound early Thursday to currently trade around the key resistance at $51.30 a barrel. However, any conclusive break below $50.00 could take prices all the way towards $48.00 per barrel over the medium-term.