Oil Update: Prices inch up on reports of drop in US drilling

Prices of oil in the US markets have fallen after reports surfaced that oil production fell for the first time since January, dropping by two rigs. Despite the fall in number of rigs, the current number of total rigs stands at its double when compared against the last year’s number.

U.S. crude futures fell 9 percent during the second quarter that ended in June while Brent futures declined 9.3 percent.

Brent crude futures climbed 16 cents, or 0.3 percent, to $48.93 per barrel by 0248 GMT, after jumping 5.2 percent last week, its first weekly gain in six weeks.

U.S. West Texas Intermediate (WTI) crude futures rose 24 cents, or 0.5 percent, to $46.28 per barrel, adding to last week's 7 percent gain.

June OPEC production was up by 280,000 barrels per day (bpd) to 32.72million bpd despite the group's pledge to hold back output in an effort to tighten the market. This increase was driven by higher output from Nigeria and Libya, who were exempted from the cuts.