Oil held at $ 68 a barrel as rising oil drilling in the US counteracts price increases from OPEC's plans for further shortage.
Futures in New York fell even 0.8 percent, US drilling companies showed five oil drilling rigs last week, fueling fears of rising US production. The May oil contract rose 1.5% last week before ending on Friday as OPEC producers said supply restraints should continue to boost investment in oil and gas production.
The price of crude rose this month to a level that has not been reached since 2014, the high-energy Middle East. While the Organization of Petroleum Countries and their allies triggered 97 percent of the targeted surplus, which weighed on prices for three years, cuts should continue, Saudi Arabia said at the Jeddah Oil Producers' Meeting last week. Meanwhile, on Friday President Donald Trump proposed OPEC to artificially boost prices.
"The fundamental dynamics of the oil market are strongly influenced by the OPEC cut-off agreement and the ever-increasing US crude oil production," said Michael Poulsen, an analyst with Global Risk Management Ltd.
West Texas Intermediate crude for June delivery traded at $ 68.01 a barrel on the New York Mercantile Exchange, at 37 cents, at 10:20 am in London. The May contract added 0.1 percent to $ 68.38 on Friday. Total traded volume was about 15 percent above the 100-day average.
Brent crude for June delivery was trading at $ 73.69 a barrel on the London ICE Futures Europe Exchange, a drop of 37 cents. Prices rose 2 percent last week to $ 74.06. Global benchmark crude oil was trading at a premium of $ 5.68 against June WTI.
Yuan-denominated delivery futures in September contributed 0.8 percent to 436.3 yuan per barrel on the Shanghai International Energy Exchange after rising 2.3 percent last week.
See also: US Oil Rush Spurs & # 39; Triangle & # 39; as output, exports rise
There is still scope for oil prices and cooperation between producers should continue at least until their scheduled expiration at the end of the year The year, and possibly until 2019, to Saudi Arabia, oil prices near $ 80 a barrel wants. Saudi Arabian oil minister Suhail Al Mazrouei dismissed Trump's allegations by saying that the group is fulfilling its "role in correcting the market".
In the US, researchers this month have so far added 23 drills to working rigs at 820 last week, Baker Hughes data showed. The country's crude oil production has more than doubled since its lows ten years ago and has exceeded 10 million barrels a day since the beginning of February each week.
- A attack on an oil pipeline supplying Libya The largest export terminal has cut production in the North African country by at least 80,000 barrels a day and will take several days to repair, National Oil said Corp.
- Money managers have increased their bullish WTI raw bets to 442,408 by 24,758 net long positions, according to the US Commodity Futures Trading Commission.
– With the support of Tsuyoshi Inajima