Oil prices slip as US rigs rise

According to OPEC's monthly oil market report, production increased by 336,000 barrels per day within the OPEC and the single largest increment came from Libya and it continues to undermine the OPEC efforts that aim to reduce global oil supply by 1.76 million barrels per day.

He said production levels in Libya and Nigeria were within the range determined when Opec, meeting in September past year in Algeria, made a decision to cut output for the first time since 2008.

Brent crude futures were down 13 cents, or 0.3 per cent, at $47.24 per barrel at 0406 GMT.

US West Texas Intermediate (WTI) crude futures were down 11 cents, or 0.25 per cent, at US$44.63 per barrel.

OPEC and non-members made a decision to extend cuts in oil output on May 25, by nine months to March 2018. Data on Friday showed a record 22nd consecutive week of increases in the number of USA oil rigs, bringing the count to 747, the most since April 2015. "Since its trough on May 27, 2016, producers have added 431 oil rigs", Goldman Sachs said late on Friday.

"The forecasts that the oil market will rebalance in the fourth quarter have taken into consideration the rise in shale oil production", he said. Supplies from OPEC also jumped in May, driven by recovering output from Libya and Nigeria, which were exempt from cuts due to unrest that had hindered their output. There are also indicators that demand growth in Asia, the world's biggest oil-consuming region, is stalling.

India, which recently overtook Japan as Asia's second biggest oil importer, saw May's demand for oil fall by 4.2 per cent in May, compared with the same month previous year In China, which is challenging the United States as the world's biggest importer, oil demand growth has been slowing for some time, albeit from record levels, and analysts expect growth to slow further in coming months.

In China, which is challenging the United States as the world's biggest importer, oil demand growth has been slowing for some time, albeit from record levels, and analysts expect growth to slow further in coming months.

Saudi Energy Minister Khalid al-Falih said the oil market is heading in the right direction, but still needs time to rebalance, the London-based newspaper Asharq al-Awsat reported on Monday.

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