Oil Prices was down in the first day of the trading week, the prices were held back by a continuing expansion in U.S. drilling that was has kept global supplies despite an OPEC-led initiative to cut production balance the supply and demand.
Price are further pressed down because of the weak demand for crude oil, causing prices to drop to levels comparable to when the output cuts were first announced late last year.
Prices for both benchmark are down by almost 14 percent since late May, when producers led by the Organization of the Petroleum Exporting Countries (OPEC) extended their pledge to their oil production by 1.8 million barrels per day by an extra nine months until the end of the first four months of 2018.
U.S. producers have added 431 oil rigs since a trough on May 27, 2016, Goldman stated. If the current rig count remain the same, the U.S. oil production will increase by 770,000 barrels per day between the fourth quarter of last year, and the same quarter this year.
Brent Crude futures were down by 13 cents and was equal to a 0.3 percent drop at $47.24 per barrel. While U.S. West Texas Intermediate (WTI) crude futures were down by 15 cents or 0.3 percent, and was sold at $44.59 per barrel.
Prices for both benchmarks are down by around 14 percent since late May.