UNITED STATES (OBSERVATORY) – Oil prices fell about 2 percent on Monday, and US crude hit a two-month low, retreating from technical support levels as investors continued to sell as US production increased, global supply growth likely, and trade tensions.
Global Brent crude fell $ 1.50, or 2 percent, in the futures contract to $ 75.29 a barrel, while West Texas Intermediate crude closed down $ 1.06, or 1.6 percent, in futures to $ 64.75 a barrel. The lowest since April 10 at $ 64.57 a barrel.
The crude was pressured by expectations that the Organization of the Petroleum Exporting Countries (OPEC) will boost production soon after it has been leading supply cuts of around 1.8 million bpd since January 2017.
Oil ministers from Saudi Arabia, the United Arab Emirates, Kuwait, Algeria and Oman, the latter not members of OPEC, met on Saturday in Kuwait at an informal meeting.
OPEC holds a formal meeting on June 22 to set production policy. It is expected to agree to increase production to cool the market amid concern about supplies from Venezuela and Iran, and Washington has expressed concern that oil prices are rising too high, OPEC sources told Reuters last month.
US Energy Information Administration data showed last week that crude oil production in the United States rose to 10.47 million bpd in March, a record monthly.