Oil prices fell on the European market on Monday as US crude oil pulled out of the $ 70 barrier, and Brent crude hit a three-day losing streak due to the prospect of global production rising in the coming period.
By 09:55 GMT Green crude fell to $ 70.15 a barrel from the opening level $ 70.50, and recorded a high of $ 70.86, and the lowest level of $ 70.06.
Brent crude fell to $ 74.45 per barrel from the opening price of $ 74.91 and recorded a high of $ 75.35 and a low of $ 74.35.
US crude oil prices rose 0.3% in Friday’s first gain in three days, recovering from a two-week low of $ 69.23 a barrel. Brent crude gained 0.5%, its second consecutive daily gain.
Last week oil prices lost an average of 4.5%, their second weekly loss in a row, as US pressure continued to push lower oil prices.
The Organization of Petroleum Exporting Countries (OPEC), in partnership with Russia, began increasing production levels starting in July, following the outcome of the meeting held in late June.
Russian Energy Minister Alexander Novak said on Friday that his country and some other producers could increase output by about 1 million barrels per day in the event of market shortages.
In the event of an increase in production of OPEC and Russia, and the continued record of production in the United States to new record levels, with the growth of production in Brazil and other countries, it is likely to repeat the market supply crisis, which was the main reason for the collapse of oil prices since June 2014, And until the start of price recovery in the first quarter of this year.
In United States, official data from Baker Hughes Oil Services showed stable drilling and drilling platforms in the country “last week” with little change on a total of 863 platforms, the highest level since March 2015.
Thanks to high drilling activities, US production has jumped more than 29% since mid-2016 to a total of 10.9 million barrels per day, surpassing Saudi Arabia’s high production in June to 10.7 million barrels per day and close to Russia’s world’s largest oil producer Million barrels per day.