WTI crude oil nears two month low
A fourth consecutive rise in US drilling rigs in data released Friday is one of the drivers for softer oil to begin the week.
The Baker Hughes oil rig count rose to 371 from 357 in Friday's report.
It's also the dawn of the beginning of refinery maintenance season and that's something that will cut demand by up to 1.2 million barrels per day in a market that's already awash in oil.
Overall demand for gasoline has been lower so far this summer. Analysts had expected a pickup in driving due to low prices but cheap gas hasn't influenced consumer behaviours as much as anticipated.
Now, oil is threatening to break below last week's intraday low of $43.69. The September contract, however, has already broken below and is trading at the lowest since April 20.
On the whole, crude has almost perfectly followed the seasonal pattern this year and if that continues, it points to much deeper loses ahead.
