Oil prices have witnessed a marginal fall amid persistent concerns of the global oversupply.
Benchmark Brent crude futures LCOc1 dropped to $52.09 per barrel by 22 cents, while US West Texas Intermediate (WTI) crude futures CLc1 improved above $50 a barrel and slipped to $49.78, reported Reuters.
Demand for oil is expected to increase in the US as the summer vacation in the northern hemisphere starts from the Memorial Day holiday this week. Despite the rise in demand, the oil market remains bloated.
Energy services firm Baker Hughes reported that US drillers have added rigs to take the total to 722, the 19th consecutive weekly rise and the highest since April 2015.
The Organization of the Petroleum Exporting Countries (OPEC) previously agreed to extend the deal to cut production by 1.8 million barrels per day (bpd) to the first quarter of 2018, which was scheduled to end next month.
The initial agreement, effective since January this year, had limited effect to reduce global oil inventories.
Goldman Sachs said that oil prices may face pressure again next year due to rise in US and OPEC production. It stated that after OPEC resumes normal production, the combined output by the oil cartel and US would increase by one million to 1.3 million bpd between 2018 and 2020.
Image: An offshore platform. Photo: courtesy of QR9iudjz0/ Freeimages.