Mubasher: Oil prices edged down 0.3% on Monday, pressured by a jump in Russian output and US drilling activity, which is on the cusp of touching its highest level in more than three years.
Brent crude futures fell to $79.13 per barrel (pb) earlier on Monday, $0.25, or 0.3%, lower than their last close, while US West Texas Intermediate (WTI) crude futures reached $65.52 bp, inching down by $0.21 from their last session.
Rising US output has started to make up for oil supply cut deal of the Organization of the Petroleum Exporting Countries (OPEC) to drain crude glut in the global markets and boost its prices, analysts told Reuters.
In the same vein, the hike of US rig count weighed on oil prices after reaching 826, its all-time high since March 2015, Baker Hughes said on Friday.
It highlights that US crude output has registered a record high of 10.8 million barrels per day (bpd) and crept to further increases in the future, according to the news agency.
“Non-OPEC supply is expected to rise sharply in 2019 led by U.S. shale growth, along with Russia, Brazil, Canada and Kazakhstan,” Reuters reported, citing US bank JPMorgan's quarterly outlook published on Friday.
The American multinational investment bank added that it was bearish on the oil price outlook in the second half of the year.
“Oil fundamentals are expected to weaken in 2019 on the back of stronger-than-expected non-OPEC supply, but also potential release of barrels from OPEC as the joint accord between OPEC and non-OPEC is unlikely to stay in place,” JPMorgan said.
By 7:06 AM GMT, Nymex futures went down 0.37% to $65.50 pb, while Brent crudes dropped 0.55% to 76.04 pb.