Oil falls

Oil prices fell one percent on Monday as signs of a strong recovery in U.S. oil drilling activity outweighed news that OPEC and non-OPEC producers were on track to meet output reduction goals set in December.

Ministers representing members of the Organization of the Petroleum Exporting Countries and non-OPEC producers said at a meeting in Vienna on Sunday that of almost 1.8 million barrels per day (bpd) they had agreed to be taken out of the market, 1.5 million bpd had already gone.

U.S. drillers added most rigs in nearly four years last week, data from energy services firm Baker Hughes showed on Friday.

This extends an eight-month drilling recovery and is supporting signs that U.S. production will continue to rise strongly just as other producers are cutting output.

U.S. oil production has risen more than 6 percent since mid-2016, although it remains 7 percent below a historic high in 2015. It is back to levels of late 2014, when strong U.S. crude output contributed to a crash in oil prices.

AG Markets Review