Oil Prices Continue to Fall Amid Supply Concerns
Investing.com - Oil prices slumped lower on Monday amid worry of U.S. crude production and the possibility of supply increase from the Organization of the Petroleum Exporting Countries and non-OPEC members.
Crude oil futures decreased 1.11% to $65.08 a barrel as of 10:33 AM ET (14:33 GMT). Meanwhile Brent crude futures, the benchmark for oil prices outside the U.S., slumped 1.9% to $75.95. Prices have been held back by concern that supply will soon outstrip global demand for oil.
Two oil rigs were added in the U.S. in the week of June 1, bringing the total count to 861, the highest level since March 2015, according to data from Baker Hughes on Friday.
{{ecl-656||U.S. crude production}} has been rising to record levels since late last year. In March it jumped 215,000 barrels per day (bpd) to 10.47 million bpd, a new monthly record, the Energy Information Administration said last week
Traders are also concerned that OPEC and Russia could raise oil output by as much as one million bpd as early as June, as the organization faces losses from Venezuela and Iran.
OPEC has been cutting crude output by 1.8 million barrels per day (bpd) to prop up oil prices. The pact began in January 2017 and is set to expire at the end of 2018. The organization is set to meet in Vienna on June 22.
Investors will look closely to data this week on U.S. commercial crude inventories to gauge how fast American supply will rise.
In other energy trading, gasoline futures decreased 0.70% at $2.1245 a gallon, while heating oil fell 0.60% to $2.1631 a gallon. Natural gas futures was down 0.61% to $2.944 per million British thermal units.
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