Brent crude reatrets from 3-month high on profit-taking

Brent crude prices kept falling as the US market opened on Monday, to deepen its losses for the second straight day, and moved further away from 3-month high on profit taking, in addition to a surge in the US drilling activities, but these losses are capped due to President Donald Trump's remarks about a near signing of the phase-one trade deal between the US and China.

Brent fell to $65.84 a barrel, after opening at $66.12, and hit an intraday high of $66.26.

Brent crude futures closed lower by 0.8% on Friday, on profit-taking after posting a 3-month high of $66.76 on Thursday.

During last week, oil prices gained 1%, in the second consecutive weekly gain, after OPEC-Plus agreement to deepen output cuts, and positive developments on the US-China trade talks.

Baker Hughes announced on Friday that US drilling rigs rose by 18 rigs last week, the second straight weekly increase, and the largest since February 2018.

The total shale oil operating rigs rose to 685, which is the highest level since the week ending November 1st.

The US production jumped about 47% since mid-2016 to its all-time high at 12.8 million barrels per day, due to the increased drilling activities.

“We just achieved a breakthrough on the trade deal and we will be signing it very shortly,” President Donald Trump said in Florida on Saturday.