Oil prices decline as supply worries persist
Oil futures headed modestly lower on Monday, with continued concerns over a supply glut keeping prices under pressure after reports last week showed a rise in OPEC oil production.
As of 14:42 (MSK), Brent oil for October declined 0.69% to $51.74 per barrel. U.S. West Texas Intermediate crude futures were trading at $48.55, down 0.55%.
The weakness comes after both the Organization of the Petroleum Exporting Countries and the International Energy Agency last week said oil production from the cartel had risen in July to almost reach 33 million barrels a day. The increased production came as Libya, Nigeria and Saudi Arabia ramped up output in the period, fueling concerns OPEC’s efforts to cut production are being wasted.
Investors were also cautious after data published by oil services firm Baker Hughes on Friday showed explorers increased U.S. oil drilling capacity for the second time in three weeks, extending a 15-month recovery.