Although oil prices have bounced back from 10-month lows, they are still down about 13 percent since late May, when the Organization of the Petroleum Exporting Countries (OPEC) and some other producers agreed to extend a deal to reduce output by 1.8 million barrels per day (bpd) until the end of next March.

But crude supplies in the United States, which is not part of the OPEC-led deal, have been dampening the impact of curbs. U.S. energy firms added 11 oil rigs in the week to June 23, bringing the total count up to 758, the most since April 2014, according to data from energy services firm Baker Hughes Inc.

Amid the rise in U.S. drilling activity, money managers cut net long U.S. crude futures and options holdings to their smallest long position since November.

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