SINGAPORE: Oil prices fell 1 per cent on Monday after US companies added rigs for the first time this year, a signal that crude output may rise further, and as China, the world’s second-largest oil user, reported additional signs of an economic slowdown.
International Brent crude oil futures were at $60.74 a barrel at 08:04 GMT, down 90 cents, or 1.46 per cent.
US crude oil futures were at $52.84 per barrel, down 85 cents, or 1.58 per cent, from their last settlement.
High US crude oil production, which rose to a record 11.9 million barrels per day (bpd) late last year, has been weighing on oil markets, traders said.
In a sign output could rise further, US energy firms last week raised the number of rigs looking for new oil for the first time in 2019 to 862, an addition of 10 rigs, Baker Hughes energy services firm said in its weekly report on Friday.
Beyond oil supply, a key question for this year will be the magnitude of demand growth.
Oil consumption has been increasing steadily, and it will likely average above 100 mbpd for the first time in 2019, driven largely by a boom in China. — Reuters
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