Oil prices find themselves under pressure this morning and are thus shedding most of yesterday's gains again. Brent has dropped to $62.5 per barrel and WTI to below $58.5 per barrel. Prices were given a boost yesterday amid hopes of a last-minute deal being struck in the debt dispute with Greece. These hopes were not fulfilled, however.



What is more, the oil market is being literally flooded with OPEC crude oil at present. According to Reuters and Bloomberg surveys, OPEC significantly scaled up its oil output again in June.



Reuters reports a 300,000 barrel increase to a 3year high of 31.6 million barrels per day, while Bloomberg even claims a rise of 744,000 to 32.1 million barrels per day.



In other words, OPEC is producing well in excess of its own target of 30 million barrels per day. Iraq and Saudi Arabia in particular were responsible for the expansion of supply, both countries having stepped up their output to a record level.



The oversupply on the oil market thus remains considerable. The IEA estimates the call on OPEC in H2 at an average 30.2 million barrels per day. If the nuclear negotiations with Iran are brought to a positive conclusion, there is also the "threat" of additional oil reaching the market from Iran.



Negotiations were extended by one week yesterday to 7 July. There are optimistic signs that an agreement could indeed be reached.