Oil down on continued concerns over US output

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US West Texas Intermediate (WTI) crude futures were at $62.22 a barrel up 18 cents, or 0.3 per cent while Brent crude futures were at $65.70 per barrel, up 21 cents, or 0.3 per cent, from their previous close.

WTI settled down 68 cents to $61.36 per barrel while Brent fell 50 cents to $64.99 per barrel.

Traders are saying the early price action was related to a drop in the number U.S. rigs drilling for more production and Friday's robust U.S. Non-Farm Payrolls report, which could lead to increased demand.

Oil prices fell on Monday as investors grappled with ongoing concerns over rising USA output and tight Opec supply, while last week's data showing speculators cut bets on oil suggested more selling could be seen.

In oil markets, US energy companies last week cut oil rigs for the first time in nearly two months RIG-OL-USA-BHI, with drillers cutting back four rigs, to 796, Baker Hughes energy services firm said on Friday. "We have monthly reports from the International Energy Agency and OPEC in the coming days to influence prices, but for now, crude is having a downbeat start to the week, unwinding some of Friday's effervescent rally".

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US crude oil production soared past 10 million barrels per day (bpd) in late 2017, overtaking output by top exporter Saudi Arabia. Some of the pressure is coming from a recovery in the U.S. Dollar, which could affect foreign demand.

Oil prices shot up more than 3 percent in Friday trading after oil and gas services company Baker Hughes reported a dip in rig activity in North America.

That has undercut some of the enthusiasm for oil, as investors weigh increased United States supply against the likelihood that the Organization of the Petroleum Exporting Countries and non-Opec producers will maintain supply cuts that have been in effect for more than a year.

Crude oil prices slipped into negative territory early Monday, following big gains last week, as broader global trade concerns spill into commodities.

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