Oil edged below $52 a barrel on Monday as rising crude output and drilling in the United States countered OPEC-led production cuts aimed at clearing a supply glut.
U.S. drillers added nine oil rigs in the week to April 28, bringing the count to the most since April 2015, energy services company Baker Hughes said on Friday. Crude output C-OUT-T-EIA in the United States has hit its highest since August 2015, government data shows.
“The U.S. rig count indicates that there is plenty more to come,” analysts at JBC Energy said in a report, referring to the outlook for U.S. production.
Global benchmark Brent crude LCOc1 for July was down 50 cents at $51.55 a barrel by 1403 GMT (10.03 am ET). U.S. crude for June CLc1 was down 44 cents at $48.89 a barrel.
Prices also came under pressure after an official survey showed on Sunday that growth in Chinese manufacturing slowed faster than expected in April, potentially weighing on the outlook for oil demand.
“The moderation in the China PMI (purchasing managers’ index) could see commodity prices come under some modest pressure,” ANZ bank said in a note.
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