Oil backs off 3-year high after increased US drilling activity

Oil prices maintained their modest losses in American trade on Monday, moving away from three-year highs on profit-taking after the US oil rig count rose, paving the way for higher output levels, after prices marked the fifth weekly profit in a row last week on market balance prospects. 

As of 13:33 GMT, US West Texas Intermediate fell $64.25 a barrel from the opening of $64.39, with an intraday high at $64.58, and a low at $64.08. 

Brent fell to $69.70 a barrel from  the opening of $69.86, with a session-high at $70.02, the best since May 2015, and a session-low at $69.54. 

US crude closed up 1.3% on Friday, marking a three-year peak at $64.38, while Brent added over 1%. 

From the US, Baker Hughes reported a rise of 10 in the US oil rig count in the week ending June 23 to a total of 752, the highest since the week ending December 8. 

Oil prices 4.5% last week as OPEC and other producers comply with the deal to cut global output by 1.8 million bpd to achieve market balance. 

US crude stocks fell across industrial nations, with US crude inventories falling to August 2015 lows last week. 

Otherwise, OPEC Secretary General Muhammad Barkindo said in the energy conference in Abu Dhabi that global demand on oil will rise by about 1.5 million bpd this year.