Investing.com - Oil prices extended overnight losses in North American trade on Monday, falling to a fresh 11-week low amid ongoing concerns over a global supply glut.
Crude oil for September delivery on the New York Mercantile Exchange sank to a session low of $43.24 a barrel, a level not seen since May 10. It last traded at $43.40 by 13:37GMT, or 9:37AM ET, down 79 cents, or 1.79%.
On Friday, New York-traded oil fell 56 cents, or 1.25%, amid signs of an ongoing recovery in U.S. drilling activity.
Oilfield services provider Baker Hughes said late Friday that the number of rigs drilling for oil in the U.S. last week increased by 14 to 371, the fourth straight weekly rise and the seventh increase in eight weeks.
The renewed gain in U.S. drilling activity fueled speculation that domestic production could be on the verge of rebounding in the weeks ahead, underlining worries over a supply glut.
The U.S. benchmark lost $1.93, or 3.83%, last week, after weekly supply data showed a surprising increase in gasoline inventories.
Despite being in the midst of the peak summer-driving season in the U.S., gasoline stocks are well above the upper limit of the average range, according to the EIA.
The report also showed that total U.S. crude oil inventories fell by 2.3 million barrels last week. But at 519.5 million barrels, stockpiles are at historically high levels for this time of year, the EIA said.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for October delivery slumped 75 cents, or 1.63%, to hit $45.34 a barrel, after falling to a daily low of $45.24, the weakest since May 11.
London-traded Brent futures declined $2.23, or 4.03%, last week, as prospects of increased exports from Libya and Iraq added to concerns that a glut of oil products will cut demand for crude by refiners.
According to market experts, elevated stocks of fuel products amid slowing global demand growth is expected to keep prices under pressure in the near-term.
In the week ahead, oil traders will be focusing on U.S. stockpile data on Tuesday and Wednesday for fresh supply-and-demand signals.
Market players will also continue to monitor supply disruptions across the world for further indications on the rebalancing of the market.