Oil Falls After OPEC Looks to Increase Supply

Oil prices extended losses on Monday as Saudi Arabia and Russia said they may increase supplies while U.S. production gains show no sign of slowing.

West Texas Intermediate graph

Brent crude futures LCOc1 stood at $75.02 a barrel at 1345 GMT (9.45 a.m. ET), down $1.42 from the previous close. The contract touched a three-week low of $74.49 earlier in the session.

U.S. crude futures were at $66.29, down $1.59, after hitting a six-week low of $65.80.

The spread between the two contracts CL-LCO1=R reached $9.38 a barrel, its widest since March 2015.

The Organization of the Petroleum Exporting Countries and other producers led by Russia began withholding 1.8 million barrels per day (bpd) of supplies in 2017 to tighten the market and prop up prices that in 2016 fell to their lowest in more than a decade at less than $30 a barrel.

via Reuters