U.S. West Texas Intermediate was down 1.8 percent at $66.67 a barrel in NY, after climbing to as high as $72.83 on May 22.
While oil futures have been pushed lower in recent days by the prospect of increased production, the USA benchmark has fallen more of late than Brent. But as US output is already at record highs, that news wasn't as damaging to crude as OPEC worries. "If Saudi Aramco still doesn't reduce prices next month and ADNOC (Abu Dhabi National Oil Company) follows, we will increase our U.S. crude purchases", a Southeast Asian oil buyer said.
However, if USA crude exports to Asia do surge to more than 1 million bpd in coming months, this could provide the Saudis and the Russians with an added incentive to make more oil available to the market, and at a more competitive price.
This reversal is in line with our baseline view that the rally in oil prices was a deviation from market supply-demand fundamentals and a moderation is oil prices was in the offing.
News reports last week said producers (http://www.marketwatch.com/story/oil-prices-slide-as-opec-russia-mull-output-increase-2018-05-25) were considering the possibility of pumping as much as 1 million more barrels of oil a day.
The drop in oil prices is welcome news for drivers, as well as companies and countries that buy a lot of energy.
It finished the last session at its lowest closing price since April 17 at $66.47 per barrel.
North and South Korea's leaders meet inside DMZ
Trump withdrew from a planned June 12 Singapore summit with Kim last Thursday, but quickly announced it could still happen. First Vice-Foreign Minister Kim Kye Gwan called the decision "unexpected" and "regrettable".
USA oil production C-OUT-T-EIA has surged by more than 20 percent in the past two years to 10.7 million bpd.
The rumors come after Saudi Arabia and Russian Federation signalled last week the need to boost production, before their output-cut deal expires at the end of the year.
With its inventory goals achieved, the group will meet June 22 in Vienna to discuss the deal, amid speculation it may have to increase output to make up for any Iranian barrels shut-in due to the US' decision to re-impose sanctions. The price of oil is rising due to a supply problem, even of shale oil, largely produced by the US, which has also become one of the largest oil producing nations in the world in the past five years.
Another player in on the global oil stage is Venezuela.
Today, current price levels averaging around $60 to $70 per barrel allow shale oil producers to reinvest in drilling wells and add capacity with free cash flow rather than debt, according to Slaughter.
The downward pressure on oil continued on Monday as traders considered data showing a jump in the number of U.S. oil rigs, indicating potential growth in United States production. US crude CLc1 was up 40 cents at $67.13.