Oil prices dropped to their lowest in three months despite OPEC efforts to curb crude output, dragged down as US drillers kept adding rigs.
Brent crude had by 0011 GMT fallen 42 cents, or 0.82%, to its lowest since November 30 at $50.95 per barrel. It closed the previous session down 1.6% at $51.37 a barrel.
US West Texas Intermediate crude (WTI) declined 50 cents, or 1.03%, to $47.99 a barrel, its weakest since November 29.
US drillers added oil rigs for an eighth consecutive week, Baker Hughes said last week, as energy companies increased spending to take advantage of a recovery in crude prices since the Organisation of the Petroleum Exporting Countries (OPEC) agreed to cut output late last year.
OPEC and other major oil producers including Russia reached a landmark agreement last year to cut production by almost 1.8mn barrels per day (bpd) during the first half of 2017.
Overshadowing the cuts, crude inventories in the United States, the world’s top oil consumer, surged last week by 8.2mn barrels.
“With the market still digesting the big increase in inventories, oil prices are likely to remain under pressure today,” ANZ bank said in a note.
Hedge funds and other money managers cut their net long US crude futures and options positions in the week to March 7, according to data from the US Commodity Futures Trading Commission (CFTC) last week.
