Crude oil prices fell on the start of the week as ongoing of the agreement to cut production between OPEC and a number of oil producers, headed by Russia, countered by the drilling activity in the United States in reference to the increase in US production.
US crude is currently trading at $57 a barrel while Brent crude is trading at $63.30 per barrel.
Recent oil gains come due to the extension of the cut-off deal, which began in January and will probably end in late 2018. There are concerns that these gains could be undermined if oil production rising from the US, which is not participating in the deal.
With the production of US drilling platforms more than 15% since mid-2016 to 9.7 million barrels per day, the highest since the early 1970s and approaching the levels of the world's largest oil producers Russia and Saudi Arabia, which will represent a risk on cut-off deal. The parties in the deal are due to meet in June to review the latest developments.
