Prices for oil dropped on Monday, with excessive supply concerns persisting in the market.
WTI oil slackened to some 67.17/bbl. WTI prices recorded a decline for the third week in a row last week. A similar situation was seen with the Brent, which fell to $77.50/bbl. Quotes lost 2.7% over the past week.
As for other data, petroleum futures on the NYMEX rose to $1.8132/gl. Fuel oil was priced at $2.2869/gl.
According to the analytical reports, the USA kept ramping up drilling operations. Specifically, the number of operating drill rigs rose to 875 (2 units up), the highest level since spring 2015.
Higher drilling activities followed reports about increased oil reserves in the USA. It was reported that oil reserves rose by 6.3 million over the past week, which in fact indicates the fifths week of the rise in the country. Oil production in the USA hiked to 11 million bbl per day.
As a result, the market keeps monitoring possible supply reduction given the upcoming US sanctions against Iran (top-3 oil producer in OPEC). For reference, Washington will restore restrictions against Iran on November 4. Earlier, Donald Trump cancelled the nuclear deal with Iran.