U.S. crude opened this week’s trading with further drops following two straight days of declines on Thursday and Friday as high production globally offset healthy refining demand.
“Momentum points to weaker commodity markets near term. Crude oil prices failed to hold at key resistance levels last week,” ANZ said on Monday in a morning note, although it added that refinery oil consumption remained high due to healthy margins.
Saudi Arabia, the world’s biggest crude oil exporter, hinted last week that it was ready to increase production above record levels to meet strong demand, if needed.
Front month U.S. crude futures were down 16 cents to $59.80 a barrel by 0011 GMT.
Brent dropped 33 cents to $63.54 a barrel.
The decline in prices followed two sessions of falls last Thursday and Friday after U.S. crude had risen close to $62 per barrel earlier in the week, a level it only climbed above during one day in May this year.