In addition to the EIA's numbers, which come close to matching those of top producer Russia, Baker Hughes disclosed in a report released Friday that USA energy companies added two oil rigs in the week to June 1, bringing the total count to 861, the highest level since March 2015.
The price of WTI crude free-on-board at Houston, as assessed by Argus Media, was $73.71 a barrel on June 1, a premium of $7.90 a barrel, or 12 percent, to WTI futures on the New York Mercantile Exchange. At the auction the previous day the price has increased by $2.11 / share (2.8 percent), and accounted for at closing of $77.5 per barrel.
For the week, WTI is on track for a 1.5 percent fall, adding to last weeks near 5 percent decline, while Brent is set to rise 1.3 percent, widening the spread between the two benchmarks. It is not a solicitation to make any exchange in commodities, securities or other financial instruments.
Still, the incentive to export means the EIA report also showed a surprise decline of 3.62 million barrels in nationwide inventories.
And it's not just a front-month aberration, with WTI's discount to Brent for crude for delivery in six months at $10.71 a barrel on June 1, the most since September 2014.
Total products supplied over the last four-week period averaged about 20.7 million barrels per day, up by 1.3 percent from the same period past year.More news: Macron tells Trump US tariffs are 'illegal', says European Union will respond firmly
Meanwhile in the USA, bottlenecks in key shale plays such as the Permian basin are keeping record-breaking levels of output trapped.
Brent crude dropped from $80 per barrel on Wednesday last week to $75 on Monday when Opec revealed its intention to increase supply to the market, plugging the gap left by missing Iranian oil and declining production in Venezuela.
OPEC and 10 non-OPEC producers, led by Russian Federation, were expected to maintain 1.8 million b/d of supply cuts through to the end of 2018, but the group has come under pressure from consumers due to rising prices.
Oil prices decline for third consecutive on the background of statements by Saudi Arabia and Russia's readiness to increase production, a new jump in drilling activity in the United States of America and a record year of sales of hedge funds in the futures market.
Rosneft PJSC is testing its capacity to bring back production it cut under the deal between Moscow and OPEC by boosting output this week by about 70,000 barrels a day, Renaissance Capital said. Crude grades on the U.S. Gulf Coast are surging, with prices in East Houston the strongest versus WTI since at least 2016 and Light Louisiana Sweet the strongest in three years.