Oil prices edged up on Wednesday as the US inventory is set record larger than expected fall, signalling healthy demand in the world’s top oil consuming country.

Brent crude prices increased $1.48 to a two-week high of $66.36 a barrel, while the US light crude rose $1.50 at $61.64, Reuters reported.

American Petroleum Institute (API) released a report that highlighted a larger than weekly fall in the US crude stocks.

Separately, the US Government predicted that domestic oil production would drop more strongly and for longer than expected.

"The situation of oversupply will remain longer than expected."

According to the forecast by the US Energy Information Administration (EIA), the US oil output is expected to decrease by 160,000 barrels per day (bpd) in 2016.

Growth in the country’s oil production is expected to resume later in 2016, the government agency predicted.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

ABN Amro said in its June monthly commodity update: "With US production still around record levels, OPEC keeping its output quota unchanged at 30 million barrels per day and indications that OPEC members may even increase its production, the situation of oversupply will remain longer than expected."

Following Opec’s decision to maintain its production volume at its meeting last Friday, Saudi Arabia plans to supply more volumes of crude oil to at least two Asian term buyers next month.