Oil prices have fallen by 2% due to concerns that higher US crude production is undermining efforts by the Organization of the Petroleum Exporting Countries (OPEC) and other parties on the output cut deal.
Brent crude futures were down $1.08 at $56.02 a barrel, while US crude futures CLc1 were trading at $52.99 a barrel, down $1, compared with a session low of $52.85, Reuters reported.
Shale producers in the US increased activity for a tenth straight week.
Baker Hughes stated that four oil rigs were added in the week ending 6 January, bringing the total count to 529.
Due to the increased drilling, oil output in the country increased by more than 4% from its 2016 low to almost 8.8 million barrels per day.
ANZ bank was quoted by the news agency as saying: "The next leg up in prices probably won't occur until the traders see evidence that production levels are falling. In the meantime, rising US drilling activity and output is likely to keep prices in check."
Iran exports increased at a time when the members of the Organization of the Petroleum Exporting Countries (OPEC) cut crude supplies in a bid to end the global oversupply.
Industry sources and data revealed that the country has sold more than 13 million barrels of oil held on tankers at sea, capitalising on an output cut deal announced by the cartel.
Oil and gas condensate output in Russia were cut by 1.2% to 11.3 million barrels per day as of 6 January from 29 December last year.
Image: The first 100% Brazilian oil platform, the P-51. Photo: courtesy of Divulgação Petrobras / ABr.
