Oil prices extend losses, Brent plumbs five-week lows

Oil prices declined in European trade for another session with Brent plumbing five-eek lows on concerns about global growth.

Prices are also pressured by increasing US oil rig count, boosting US production.

Global Prices

US crude fell 1.5% to $108.42 a barrel, while Brent declined 1.75% to $111.58 a barrel, after US crude lost 6% on Friday, while Brent lost 5% back then, the largest such loss sine May 9.

Global oil prices declined 7.5% last week, the second weekly decline in a row, and the largest such loss since March,

Global Economy

As global central banks continue to tighten policies to control inflation, fears are spreading about a slowdown in growth rates.

A global contraction would obviously harm demand on oil and hurt prices.

Baker Hughes data showed US oil rigs rose by 4 rigs to 584 rigs last week, the second such increase in a row to March 2020 highs.

Oil rigs rose in May for the 22nd month in row, the longest such streak ever, while US output rose 100 thousand bpd last week to a total of 12 million bpd, the highest since April 2020.