Crude has halved in value over the last year as soaring global production overwhelmed slowing demand and the much lower prices have now begun to hit drilling, particularly in the US. US drillers have cut the number of rigs in operation for three straight weeks.
Investment bank Goldman Sachs said in a report that rig data pointed to a decline in US oil production between the second and fourth quarters of this year of more than 250,000 barrels per day.