The US Energy Information Administration report delivered on Wednesday showed that crude oil inventories increased by 118,000 barrels during the week ended June 23rd, the second weekly increase in the last 12 periods. Helping oil prices recover was the dip in weekly production which fell by 100,000 barrels to 9.3 million bpd - the biggest weekly decline in output since 2016 after Tropical Storm Cindy saw production shuttered.
Additional support for prices came following a drop in US gasoline stocks, which slid by 894,000 barrels last week. Traders interpreted the decline as indicative of a pick-up in demand following a tepid start to the peak US summer driving season. Oil slipped into bear market last week amid concerns that rising global supply will undermine OPEC efforts. In the meantime, if Brent futures stay below the $48-mark, the current downward trend will remain in place.