Crude oil prices extended their southward journey on Monday as a significant increase in US oil drilling rig count last week signaled a pickup in US crude production, going forward, threatening to worsen a supply glut.
According to Baker Hughes, the number of rigs drilling for oil in the US rose by 21 last week to 659, the highest level since May 2015.
Further, a drop in China's industrial profits signaled a worsening slowdown in the world's second biggest economy, dampening prospects for oil consumption, exasperating a sell-off in the energy commodity. Industrial profits in China fell 0.3 per cent, year on year in June 2015.
At the MCX, Crude oil futures, for the August 2015 contract, is trading at Rs 3,085 per barrel, down by 0.42 per cent, after opening at Rs 3,087, against the previous close price of Rs 3,098. It touched an intraday low of Rs 3,080. (At 11:23 AM).