Oil falls amid weak demand, possible supply boost

Oil prices stooped on Monday, bowing under pressure from expectations of higher supplies and dwindling demand.

Brent crude futures shed 0.7%, or 58 cents, to $81.59 per barrel by 0151 GMT, while the U.S. West Texas Intermediate (WTI) crude likewise lost 0.7%, or 58 cents, to $80.21 per barrel.

Both benchmark contracts have declined in the last three weeks, dragged by the greenback’s recovery and talks that U.S. President Joe Biden’s administration might release oil from the U.S. Strategic Petroleum Reserve to temper prices.

U.S. energy firms increased oil and natural gas for the third straight week this week as crude prices rocketed to an almost seven-year high, prompting the return of some drillers to well pads.

On Friday, energy services firm Baker Hughes Co said that the oil and gas rig count, an early indicator of future output, went up by six to 556 in the week of November 12, the highest level since April 2020.