Oil prices fell 3 percent on Monday as Iraq announced record-high oil production feeding into a heavily oversupplied market, wiping out much of the gains made in one of the biggest-ever daily rallies last week.
Brent crude, the global benchmark, was down 93 cents at $31.25 a barrel at 0955 GMT, losing 3 percent from its closing price on Friday, when Brent surged 10 percent.
U.S. crude traded $1.02 lower at $31.17 a barrel.
Iraq’s oil ministry told Reuters on Monday oil output had reached a record high in December. Its fields in the central and southern region produced as much as 4.13 million barrels a day, the government said.