Oil price falls as signs of US output rise overshadows Opec-led cuts
London — Oil prices fell 1% on Monday as signs of a strong recovery in US oil drilling activity outweighed news that oil cartel Opec and nonOpec producers were on track to meet output reduction goals set in December. Global benchmark Brent crude prices were down 53c to $54.96 a barrel at 10.26am GMT, while US West Texas Intermediate (WTI) crude futures traded at $52.61 a barrel, down 61c, or 1.1%, on Friday’s close. Ministers representing members of Opec and nonOpec producers said at a meeting on Sunday that of almost 1.8-million barrels per day they had agreed would be taken out of the market, 1.5-million barrels per day had already gone. "A lot of this is already priced in and the US rig count keeps rising and gathering pace," said Carsten Fritsch, commodities analyst at Commerzbank in Frankfurt. US drillers added the most rigs in nearly four years last week, data from energy services firm Baker Hughes showed on Friday. This extends an eight-month drilling recovery and is supporti...
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