Oil falls 3 percent on rising U.S. production, economic slowdown fears

NEW YORK (Reuters) by Laila Kearney – Oil fell about 3 percent on Monday, its biggest one-day percentage drop in a month, after an increase in U.S. crude drilling pointed to further supply growth amid continuing concerns about a global economic slowdown. Brent crude oil futures sank $1.71, or 2.8 percent, to settle at $59.93 a barrel, while U.S. West Texas Intermediate crude slumped $1.70, or 3.2 percent, to settle at $51.99 a barrel. The last time both crude benchmarks saw bigger daily percentage drops was on Dec. 27. “We’re seeing oil prices really start to break down here,” said Phillip Streible, senior market strategist at RJO Futures in Chicago. “One of the factors that played (into prices) is the rising rig count that we saw on Friday.” U.S. drillers added 10 oil rigs last week, according to energy services firm Baker Hughes on Friday, in another sign of the expanding record U.S. crude production that has soured market sentiment. The trade war between Washington and Beijing weighed on futures as investor optimism waned that the two sides would soon end the months-long tariff fight that has damaged China’s economy. That, coupled with uncertainty about how long the U.S. government… continue reading

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