Oil prices are on the path to recovery after bouncing back from earlier losses.

However, the rise in prices was capped by a record US crude production and expectations of increasing output from OPEC producers.

US West Texas Intermediate (WTI) crude futures rose 11 cents, trading at $67.15 a barrel after posting a fall of around 2% on 31 May, Reuters reported.

Brent futures, the international benchmark for crude, jumped 16 cents to trade at $77.72 per barrel.

WTI is on course to post a weekly fall of 1.5% after registering an almost 5% decline last week.

Data released by the Energy Information Administration (EIA) revealed that the US crude output production soared 215,000 barrels per day to 10.47 million barrels per day for the month of March.

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By GlobalData
“US production is growing, the line is growing straight up when you look at US production.”

Mitsubishi oil risk manager Tony Nunan was quoted by the news agency as saying: “US production is growing, the line is growing straight up when you look at US production.”

“The big thing is the increasing spread between Brent and WTI. Financially it makes sense for buyers to take WTI as it is so cheap.”

The data also indicated that US crude inventories dipped 3.6 million barrels last week.

After touching levels near $80 per barrel, Brent crude reached a three-week low below $75 a barrel on 28 May in the wake of indications that Saudi Arabia and Russia could increase production in response to potential supply restrictions in Venezuela and Iran.

A meeting between the OPEC producers and Russia is scheduled to be held later this month.