Oil touches three-month lows, as U.S. supply swells.
Rising U.S. inventories and drilling activity offset optimism over OPEC’s efforts to restrict crude oil output. As a result, oil hovered around three-month lows on Monday.
The price has fallen by more than 8 percent since last Monday. Last week was its biggest week-on-week drop in four months.
U.S. drillers added drilling rigs for an eighth consecutive week. They have increased spending to benefit from an earlier recovery in crude prices since the Organization of the Petroleum Exporting Countries (OPEC) agreed to cut output.
OPEC states have been complying with supply curbs, led by Saudi Arabia. Nevertheless, it has not been enough to overshadow a rise in U.S. inventories to a new high.