Oil prices fell on Monday as traders factored in an expected 1 million
barrels per day (bpd) output increase in the wake of an Organization of
the Petroleum Exporting Countries (OPEC) meeting in Vienna last week.
Despite this, analysts said global oil markets would likely remain relatively tight this year.
Brent crude futures LCOc1 were at $74.25 per barrel at 0636 GMT, down 1.7 percent from their last close.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $68.42 a barrel, down 0.2 percent, supported more than Brent by a slight drop in U.S. drilling activity and a Canadian supply outage.
Prices initially jumped after an OPEC deal to increase output was announced late last week as it was not seen boosting supply by as much as some had expected.
OPEC and non-OPEC partners including Russia have since 2017 cut output by 1.8 million bpd to tighten the market and prop up prices.
After officially meeting on Friday, OPEC gave a press conference on Saturday that implied a bigger increase in supply.
In the United States, U.S. energy companies last week cut one oil rig, the first reduction in 12 weeks, lowering the total rig count to 862, Baker Hughes (GE.N) said on Friday.
That put the rig count on track for its smallest monthly gain since declining by two rigs in March, with just three rigs added so far in June. However, the overall level remains just one rig short of the March 2015 high from the previous week.
Despite this, analysts said global oil markets would likely remain relatively tight this year.
Brent crude futures LCOc1 were at $74.25 per barrel at 0636 GMT, down 1.7 percent from their last close.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $68.42 a barrel, down 0.2 percent, supported more than Brent by a slight drop in U.S. drilling activity and a Canadian supply outage.
Prices initially jumped after an OPEC deal to increase output was announced late last week as it was not seen boosting supply by as much as some had expected.
OPEC and non-OPEC partners including Russia have since 2017 cut output by 1.8 million bpd to tighten the market and prop up prices.
After officially meeting on Friday, OPEC gave a press conference on Saturday that implied a bigger increase in supply.
In the United States, U.S. energy companies last week cut one oil rig, the first reduction in 12 weeks, lowering the total rig count to 862, Baker Hughes (GE.N) said on Friday.
That put the rig count on track for its smallest monthly gain since declining by two rigs in March, with just three rigs added so far in June. However, the overall level remains just one rig short of the March 2015 high from the previous week.
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