Oil prices have decreased on the back of concerns in the market about growing US crude oil production.
The fall in prices has wiped out gains made since 23 February this year.
US West Texas Intermediate (WTI) crude for April delivery CLc1 fell by 13 cents, or 0.2%, to hit $63.78 a barrel, while Brent crude LCOc1 in London fell 12 cents, or 0.2%, to reach $67.38 a barrel, according to Reuters.
Growing fears regarding soaring US output outweighed indications that of stronger demand and faith in the efforts made by the OPEC-led group to curtail supply and increase the prices of LCOc1.
By next year, it is projected that the US will overtake Russia in terms of oil production.
International Energy Agency (IEA) executive director Fatih Birol was quoted by the news agency as saying: “US shale growth is very strong, the pace is very strong … The US will become the No1 oil producer sometime very soon.”
Based on data released by the government last week, US output stood at 10.27 million barrels per day (bpd).
A fall in net imports has lead to a decline in crude inventories, according to data released by the US Energy Information Administration (EIA) last week.
Futures brokerage Oanda Asia-Pacific region trading head Stephen Innes was quoted by the news agency as saying: “It’s the dwindling Cushing inventories that continue to resonate with oil traders, while another supply disruption in Libya has provided that extra fillip.”
Cushing, Oklahoma, is a major trading hub for the WTI.
Production at the 70,000bpd El Feel oilfield in Libya was suspended on Saturday.
All eyes are focused on the data to be released by the American Petroleum Institute (API) and the EIA on Tuesday and Wednesday, respectively.
As per a preliminary poll conducted by the news agency, US crude inventories are expected to have increased by 2.7 million barrels last week.