Shares of energy producers fell as oil futures hit their lowest mark of the year amid perceptions of an intractable over-supply issue. Just as U.S. shale-oil producers ramp up production, there are signs that OPEC's initial success in enforcing production targets for the limit deal. Analysts at brokerage Morgan Stanley warn that "the current bloated stock levels (between 300 million to 350 million barrels above the 5-year average) are pressuring oil prices." A return to the five-year average stock levels could prove "elusive for some time to come," the analysts predict, saying seasonal increases in demand will likely be offset by another increase in shale-oil production.
Continue Reading Below
-Rob Curran, firstname.lastname@example.org
(END) Dow Jones Newswires
June 20, 2017 16:11 ET (20:11 GMT)