On Monday, crude prices sank by 1%, as a higher American rig count unsettled financial markets amid an ongoing concern that production cuts, planned as part of concerted action between OPEC as well as Russia, mightn’t be as big as initially expected.
Brent crude futures were worth $53.89 a barrel, down 1% from their last close. West Texas Intermediate crude futures hit $51.49, tumbling 1% too.
Traders stressed that price dip were triggered by ascending output right after the previous week’s accord between OPEC and Russia to minimize output in 2017. The cuts aim to tame a supply glut, which has weighed on financial markets for over two years.
Additionally, American energy companies extended drilling for new crude production into a seventh month the previous week.
The US crude rig count kept going down this week, up by 3 rigs, since its drop on May 27, 2016.
With American output set to rally, there’re also gnawing worries that the cuts announced the previous week by OPEC as well as Russia mightn’t be as deep as initially expected.
