Oil posted gains on Monday on news that the Iraqi military had seized control of Kirkuk, but oil fundamentals and the large supply capacity of both OPEC and U.S. shale saw prices fall back on Tuesday. U.S. oil production will average 9.4 million barrels per day in the second half of 2017, according to the EIA, an increase of 340,000 bpd from the first half of the year. – Production is set to surge to 9.9 mb/d next year, which, if it comes to pass, will be the largest annual average output on record, surpassing the previous all-time high of 9.6 mb/d in 1970. – Most of the production increase will come from the Permian basin. Market Movers – Phillips 66 (NYSE: PSX) was downgraded by Jefferies from Hold to Underperform, with a $77 price target. […]