Oil slips $1 on concerns US production is rising
Oil fell by $1 a barrel on Monday as signs of growing US production outweighed optimism that many other producers, including Russia, were sticking to a deal to cut supplies in a bid to bolster the market.
A stronger US dollar also weighed as the currency surge made it more expensive to hold dollar-denominated commodities.
Brent crude futures LCOc1 were down $1.01, or 1.8 percent, at $56.09 a barrel at 1006 GMT. US crude futures CLc1 were trading at $52.99 per barrel, down $1, or 1.85 percent.
"We see the optimism surrounding Opec and non-Opec production cuts being counterbalanced by fears of higher US crude production as the higher rig count of last Friday still weighs," said Hans van Cleef, senior energy economist at ABN Amro.
Last week, US energy companies added oil rigs for a 10th week in a row, Baker Hughes data showed, extending a recovery in activity into an eighth month as crude prices remained at levels at which many drillers can operate profitably.
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