Oil prices extended declines into a third session on Monday, dragged down by worries about oversupply as OPEC saw record output last month and as the U.S. rig count rose again.
London Brent crude for January delivery was trading down 3 cents at $44.72 a barrel, after settling down $1.09 on Friday. The benchmark on Friday hit its lowest since Aug. 11 at $44.19.
NYMEX crude for December delivery was down 11 cents at $43.30 a barrel, after closing down $1.25 on Friday. The contract’s Friday-low of $43.03 was the weakest since Sept. 20.
Oil has been under pressure after the Organization of the Petroleum Exporting Countries (OPEC) said on Friday that its output rose to 33.64 million barrels per day (bpd) last month, up 240,000 bpd from September.
OPEC plans to cut or freeze output, but investors are sceptical that such a deal will be reached during the cartel’s Nov. 30 meeting and are also concerned that whatever agreement reached would not be effective.
Saudi Energy Minister Khalid al-Falih has said it was imperative for OPEC members to reach a consensus on activating a deal made in September in Algiers to cut oil production, according to Algeria’s state news agency on Sunday.
Iran opened three oilfields with a total production of more than 220,000 bpd on Sunday, as the country ramps up its production after the lifting of sanctions.
State-run oil company Petrobras’ production of oil and natural gas in Brazil fell 2.5 percent from a record high in September to 2.68 million barrels of oil equivalent per day in October due to maintenance stoppages, the company said.
Adding to bearish sentiment was data by oil services company Baker Hughes Inc that showed U.S. drilling rigs rose by two in the week to Nov. 11 to 452 rigs, an increase in 21 weeks out of the last 24.