The U.S. bank said that if the rig count stayed at current levels, U.S. oil production would increase by 770,000 barrels per day between the fourth quarter of last year and the same quarter this year in the shale oil fields of the Permian, Eagle Ford, Bakken and Niobrara.

Supplies from within OPEC and other countries officially participating in the cuts, like Russia, also remain high as some countries have not fully complied with their pledges.

There are also indicators that demand growth in Asia, the world’s biggest oil consuming region, is stalling.

Japan’s customs-cleared crude oil imports fell 13.5 percent in May from the same month a year earlier, to 2.83 million barrels per day, the Ministry of Finance said on Monday.

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