Oil prices in the US have declined following reports of a prospective rise in output in the country, while the global markets continue to remain stable supported by expectations of an extension to the current supply cut deal.
The US West Texas Intermediate (WTI) crude futures dipped 23¢ to $58.72 a barrel, while the global benchmark Brent crude futures LCOc1 remained unchanged at $63.85 a barrel, reported Reuters.
In addition, the number of active oil rigs in the US increased to 747 last week as rising prices encourage production.
Crude production in the country has also increased by 15% to 9.66 million barrels per day since mid-2016, which is expected to rise further due to increasing drilling activity.
WTI rose to $59.05 a barrel last week due to the closure of the 590,000 barrels per day (bpd) Keystone pipeline following a spill.
The Keystone pipeline provided a connection from Canada’s oil sand fields to the US.
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The global oil market remained stable due to the ongoing efforts of the Organization of the Petroleum Exporting Countries (OPEC) and several other producers to curb 1.8 million barrels per day of output since the beginning of this year.
OPEC’s original agreement to withhold production is set to end in March next year, though it is expected to be extended as members of the oil cartel will meet this week to discuss the policy.
However, traders noted that the uncertainty of Russia’s commitment to the deal, as well as rising production in the US, could prevent the crude prices from improving further.