The Energy Information Administration (EIA) said that the oil market is maintaining a global crude glut despite global demand growth, a drop in non-OPEC production, and a decline in crude stockpiles, Economic Times reported. According to EIA, crude stockpiles fell 2.2m barrels by 1st July, which is below a 2.3m barrel drop previously forecast by analysts in a Reuters poll.

World’s largest oil exporter Saudi Arabia and OPEC heavyweight produced 10.262mb/d in April, compared with 10.224mb/d a month earlier.

Further considerably adding to the global glut, the Islamic Republic of Iran has increased its crude exports capacity at its main terminal on Kharg Island to allow eight tankers to load simultaneously. Tehran thus continues exporting extra barrels of crude in oil markets following the removal of oil sanctions, sparking an unprecedented market competition among top oil producers.

In mid June, Iran’s Minister of Petroleum, Bijan Zangeneh, said in a parliamentary session that the country’s crude oil output has crossed 3.8mb/d with over 2mb/d being exported to foreign destinations. Furthermore, Iranian top government economic advisory body has approved, in early July, the country’s new oil and gas contracts in efforts to boost crude oil production through foreign investment.

Iran has strictly rejected an oil freeze plan suggested by OPEC members expressing determination towards increasing oil production with a goal to recapture its once lost global market share.

Economic Times further added that comments by Iran to export extra barrels of oil as well as Russian export crude oil at its fresh record in May will ensure that the glut in the oil market continues to bother investor sentiments.

Meanwhile, Brent and WTI oil prices traded 5.5% and 4.7% lower, respectively, a drop to two-month low in the first two weeks of July 2016. Brunch News informed that market trends signal no signs of oil price recovery.