Oil prices fell after the US Department of Energy data showed an unexpected increase in oil inventories.
Energy Information Administration reported an increase of reserves by 1.06 million barrels, while markets expected a decline of 800,000 barrels. World oil reserves remain above average levels after several years of very high production in the US and other countries.
EIA raised the forecast for oil production in the US this year. However, as reported by the department, the production will be below 2015 levels.
OPEC reported that July production rose by 45,000 barrels per day versus 33.11 million barrels per day in June. Saudi Arabia told OPEC that its production in July reached a historical maximum of 10.67 million barrels per day.
On Monday it was reported that OPEC may undergo an informal meeting on which the restriction of production will be discussed. However, markets are skeptical that the cartel would take serious action against low oil prices. Investors point out that the OPEC members could not agree on a freezing of oil production in the past. Even if an agreement is reached on the freeze, the impact on prices will be limited, since most of the oil-producing countries are already using almost all the available production capacity, said Capital Economics economist Thomas Pugh.
The cost of the September futures on WTI fell to 42.05 dollars per barrel.
September futures price for North Sea petroleum mix of mark Brent fell to 44.11 dollars a barrel on the London Stock Exchange ICE Futures Europe.
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