On Monday, oil declined, drifting away from its strongest outcome for more than two years amid signs that American producers will increase output to benefit from the recent soar.
On Friday, oilfield services company Baker Hughes informed that the overall number of active American rigs drilling for crude rallied by nine to 738 the previous week. It turned to be the biggest ascend since June, generating concern that American shale producers will increase output with crude prices holding near 28-month maximums.
The weekly rig count is considered to be a crucial barometer for the drilling industry. It acts as a proxy for domestic crude output.
As for losses, they were limited amid optimism that crude producers will decide to extend an output cut at their gathering at the end of this month.
According to the original terms of the deal, OPEC along with 10 other non-OPEC countries led by Russia agreed to reduce output by 1.8 million barrels a day for up to six months. In May, the agreement was extended for a period of 9 more months until March next year in an attempt to cut global crude inventories and back crude prices.