Oil down 2pc as Opec output hike sparks profit-taking
Oil prices fell about 2 percent on Monday as production from the Organization of the Petroleum Exporting Countries was close to all time peaks and record speculative buying in global benchmark Brent sparked profit-taking on last month's outsized rally.
Opec's crude production climbed in April to 32.64 million barrels per day, close to the highest level in recent history, a Reuters survey showed. Iraq's April exports from southern fields increased, as did seaborne exports from Russia, the biggest exporter outside Opec. Traders also cited a bearish stockpile rise of 821,969 barrels at the Cushing, Oklahoma delivery point for US West Texas Intermediate (WTI) crude futures during the week to April 29.
Brent crude rose 21.5 percent in April, its largest monthly gain in seven years. Speculator bets on higher Brent prices reached all-time peaks last week, while bullish bets on WTI futures and options rose to 10-month highs, feeding investor views prices may have risen too far, too fast.
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