Iraq said on Monday that exports rose slightly in September from its southern oilfields, while an earlier Reuters survey indicated that the Organization of the Petroleum Exporting Countries (OPEC) overall boosted output. The November contract expired Friday up 13 cents at $57.54.
Global benchmark Brent crude for December delivery was down 23 cents, or 0.4 percent, at $56.56 a barrel.
The market may well discover it has been asleep at the wheel and far too relaxed about shale keeping a ceiling on prices forever, said Ben Luckock, a senior executive at Trafigura, the world's third-biggest independent oil trader.
Energy markets are going to be "in the driver's seat" for the rest of the year after metals and other commodities led the rally in the first two months of the third quarter, Morse said.
According to Russia's Energy Minister, the country reduced oil production last month as part of a deal with OPEC; the current arrangement will last through March, 2018.
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Beyond short-term market drivers, analysts at Barclays bank said oil demand could be seriously dented by improving fuel efficiency and the rise of electric vehicles (EV). Supply from the 11 members with production targets under the original accord rose by 40,000 bpd.
Now the market expects data on oil reserves in the US from the American Petroleum Institute (API) and U.S Energy Department.
Crude inventories fell by 6 million barrels in the week to September 29, compared with analysts' expectations for an decrease of 756,000 barrels. The EIA report is scheduled for release at 10:30 a.m. ET Wednesday. And this has exerted some downward pressure on the oil price.
As U.S. refineries recover, near-term future prices have started to retreat again, while physical market prices, a relatively reliable indicator for futures market, have shown a more dramatic reversal.
The number of oil drilling rigs in United States has increased by 45 per cent since end of 2016, while country's crude oil production climbed over 9.5 million barrels per week in July 2016, averaging 8.4 million.