Oil falls more than 1% on oversupply concerns

Oil drilling rigs

Oil prices fell today, Aug. 4, amid concerns over a global supply glut, after US production hit a record monthly high in May and OPEC+ agreed to raise its September production ceiling.

Brent crude futures for October delivery fell 1.31%, or 91 cents, to $68.76 a barrel, after losing 2% earlier in the session.

WTI crude futures for September delivery declined 1.54%, or $1.04, to $66.29 a barrel.

The US Energy Information Administration said in a report published last week that US crude oil production rose by 24,000 barrels per day to 13.49 million barrels per day in May, marking a record high for the second consecutive month.

OPEC+ countries agreed during a meeting held on Aug. 3 to raise their September production ceiling by 547,000 barrels per day, as part of their efforts to accelerate the withdrawal of voluntary cuts and regain market share for the alliance.

These developments have added pressure to global crude oil prices, particularly amid concerns about a slowdown in the US labor market and economy following last week's weak employment data, and consequently, weak energy consumption in the US.