Oil Prices Slump Amid Worries Over Rising U.S. Rig Count

Investing.com – Oil prices edged lower to start the week on Monday, as a steady increase in U.S. drilling for new production marked one of the few factors tamping back crude in an otherwise bullish environment.

New York-traded lost 58 cents, or roughly 0.8%, to $67.53 a barrel by 8:50AM ET (1250GMT).

Meanwhile, , the benchmark for oil prices outside the U.S., dipped 50 cents, or 0.7%, to $73.30 a barrel.

U.S. drillers added five oil rigs in the week to April 27, bringing the total count to 825, General Electric (NYSE:)’s Baker Hughes energy services firm said in its closely followed report on Friday.

That was the highest number since March 2015, underscoring worries about rising U.S. output.

Indeed, domestic oil production – driven by shale extraction – rose to an all-time high of 10.59 million barrels per day (bpd) last week, the Energy Information Administration (EIA) said.

Only Russia currently produces more, at around 11 million bpd.

Losses were limited as investors waited for signs on whether the U.S. would reimpose sanctions on Iran.

Oil prices have been well-supported this month amid speculation the United States will renew sanctions against Iran, a major Middle East oil producer and member of the Organization of the Petroleum Exporting Countries (OPEC).

That would likely result in a reduction of Iran’s oil exports, which would further tighten global supplies.

The Trump administration has until May 12 to make a decision.

, oil traders will await fresh data on U.S. commercial crude inventories on Tuesday and Wednesday to gauge the strength of demand in the world’s largest oil consumer and how fast output levels will continue to rise.

Comments from global oil producers for additional signals on whether they plan to extend their current production-cut agreement into next year will also remain on the forefront.

Geopolitics will also likely keep investors on their toes this week.

In other energy trading, declined 1.1% to $2.104 a gallon, while dropped 0.6% to $2.120 a gallon.

were a shade lower at $2.761 per million British thermal units.

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