After four consecutive weeks of strong sales, oil futures started a new week not very positive on Monday, because of new concerns about supply.
On Friday, data showed that us oil operators have added another six active oil drilling rigs last week. Oversupply of oil reduces prices for nearly three years. Despite the fact that OPEC members and Russia are trying to reduce their output since January, but the market remains oversupplied and oil reserves around the world remain high.
Bears were also encouraged by the potential of a strong flow of oil from Nigeria and Libya, which will hit in the near time the market. Libya recently announced that it will defrost 160,000 barrels per day, which has been suspended for nearly two years because of a dispute with a German energy company. It can lead Libya's daily productions to 1 million barrels by the end of July, according to the national oil company.