Oil prices have dipped in the wake of a further increase in American production, as indicated by rise in the US rig count.
The rising production could offset output cuts voluntarily enforced by OPEC-led producers to tighten markets, according to Reuters.
US West Texas Intermediate (WTI) crude futures declined 11 cents, or 0.2%, to trade at $57.25 a barrel.
Brent crude futures fell by 15 cents, or 0.2%, trading at $63.25 a barrel.
ASR Wealth Advisers equities and derivatives adviser Shane Chanel was quoted by the news agency as saying: “The largest concern for investors currently remains the rise in the US rig count, which could potentially jeopardise the OPEC and Russian agreement when they meet for a review in June 2018.”
The US-based drillers increased the number of rigs drilling for new oil output by two to 751, the highest level since September this year, bolstering government data which suggests an increase in US crude production to 9.71 million barrels per day (bpd).
Oil markets are wary of the challenges posed by growing US production to the efforts to continuous efforts being made by the OPEC and other producers, including Russia to improve oil prices.
Last month, the OPEC and a group of non-OPEC producers reached an agreement to extend production cuts until the end of next year.
However, citing Kuwait’s oil minister Essam al-Marzouq and United Arab Emirates Energy Minister Suhail bin Mohammed al-Mazroui, the news agency stated that the output cuts in place could be rolled back as part of an exit strategy in June next year.