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SINGAPORE (Reuters) – Oil prices fell on Monday as supplies from Saudi Arabia and Russia rose, and as signs of an economic slowdown in Asia dented the outlook for demand.
Brent crude oil futures LCOc1 were at $ 78.29 per barrel at 0645 GMT, down 94 cents, or 1.2 percent, from their last close.
U.S. West Texas Intermediate crude futures CLc1 were down 67 cents, or 0.9 percent, at $ 73.48 in barrel, after rising more than 8 percent last week.
Prices in the oil market are also weakened, with a low average of $ 73,592 in barrel for June, down from $ 74,413 in barrel in May.
President Donald Trump wrote in a weekend that Saudi Arabia's King Salman bin Abdulaziz Al Saud had agreed to produce more oil. The White House later on back on Trump's comments, saying the king said his country can raise oil production, if needed.
Saudi Arabia's output is up by 700,000 barrels per day (bpd) from May, a Reuters survey found on Friday, and close to its 10.72 million bpd record from November 2016.
Further compensation for supply disruptions elsewhere was Russian output , which the Energy Ministry said on Monday at 11.06 million bpd in June, up from 10.97 million bpd in May.
Production in the United States C-OUT-T-EIA has also fallen to 30 percent in the past two years, to 10.9 million bpd, meaning the world's biggest oil producers now almost 11 million bpd each, meeting a third of global oil demand.
AHEAD DISORDER?
China, the European Union, India and Canada, China, the European Union, India and Canada.
Asia's main economic hubs of China, Japan and South Korea reported to slowdown in export orders in June amid escalating trade disputes with the United States.
"Recurring salvos in the trade and falling assets of the global economy, U.S. Bank JP Morgan.
The bank said a "medium-intensity (trade) conflict would likely reduce overall economic growth by at least 0.5 percent," before accounting for tighter financial conditions and sentiment shocks. "
Despite the relief from Saudi Arabia and Russia , oil markets remain tense because of unplanned outages from Canada to Venezuela and Libya.
Looming U.S. sanctions against Iran further contribute to expected tightness.
Trump threatened in an interview that aired on Sunday to sanction European companies that do business with Iran.
"The Trump Administration's plan for Iran sanctions is now abundantly clear. They seek to push Iranian exports of crude, condensate, and oil products to zero, "energy consultancy FGE said in a note.
"Overall, 2.4-2.7 million bpd of Iranian crude / condensate is at risk by year …" FGE added.
Reporting by Henning Gloystein in SINGAPORE; additional reporting by Osamu Tsukimori in TOKYO; Editing by Richard Pullin and Joseph Radford
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