Oil Retreats From 2016 Highs

Oil Retreats From 2016 HighsOil Retreats From 2016 Highs

Oil prices edged back from 2016 highs on Monday, as rising production in the Middle East outweighed a decline in US output and a sliding dollar.

Crude production by the Organization of Petroleum Exporting Countries rose in April to 32.64 million barrels per day, close to the highest level in recent history, Reuters reported.

Iraq's April exports from southern fields increased, as did seaborne exports from Russia, the biggest exporter outside OPEC. Brent was trading at $47.20 per barrel, down 17 cents from its last settlement. US crude was down 2 cents at $45.90 a barrel.

On Friday, the June Brent contract expired at $48.13 a barrel, a 21.5% gain over the month that marked the largest monthly advance since May 2009. Earlier in that session, it reached $48.50, a six-month high.

The US oil rig count fell for the sixth week last week, which analysts said showed the price of oil had not risen enough to lure shale producers back. The price slide, which came amid low liquidity due to the May Day holiday, contrasted with broader investor confidence in an oil price rebound.