London — Oil fell by $1 a barrel on Monday as signs of growing US production outweighed optimism that many other producers, including Russia, were sticking to a deal to cut supply in a bid to bolster the market. A stronger US dollar also weighed as the currency surge made it more expensive to hold dollar-denominated commodities. Brent crude futures were down $1.01, or 1.8%, at $56.09 a barrel at 10.06am GMT. US crude futures were trading at $52.99 a barrel, down $1, or 1.85%. "We see the optimism surrounding Opec and non-Opec production cuts being counterbalanced by fears of higher US crude production as the higher rig count of last Friday still weighs," said Hans van Cleef, senior energy economist at ABN Amro. Last week, US energy companies added oil rigs for a 10th week in a row, Baker Hughes data showed, extending a recovery in activity into an eighth month as crude prices remained at levels at which many drillers can operate profitably. This raised concerns that US production is...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.