Crude Oil investors shrugged off optimism over an OPEC production cut extension to focus on increased output in the US, sending Oil prices lower in quiet Monday trade.
In subdued Easter holiday trading, Crude Oil slid 0.88% lower with a barrel of Crude Oil valued at $53.71. Prior to major markets closing for the holiday break on Thursday, prices closed up 3 cents at $55.89 a barrel.
Oil rose last week for a third consecutive week. Brent Oil added 1.2 percent over the four days prior to Good Friday. WTI Oil rose 1.8 percent in the same period. However as markets opened, Crude oil fell on signs that the United States, the largest consumer of oil is adding to its output. Investors saw this as counteracting strong economic growth in China, the world’s second largest consumer of oil.
Pushing prices higher recently, has been OPEC’s efforts to reduce production. Iran boosted hopes that OPEC and non-OPEC oil producers may extend their cuts in production beyond the half-year agreement.
Last week, U.S. drillers added rigs for a 13th consecutive week, a sure sign output increases are continuing. The 11 rigs added in a week brings the count up to 683, the highest in two years. oil production in the US has risen to 9.24 million barrels per day (bpd). This makes the US the world’s third-largest producer after Russia and Saudi Arabia.