Oil fell more than 1 percent on Monday as the market saw signs of continuing U.S. production increases

Oil fell more than 1 percent on Monday as the market saw signs of continuing U.S. production increases, though prices remained in sight of their recent two-year highs thanks to last week’s decision by OPEC and other producers to extend output cuts. Brent crude futures fell $1.00 a barrel to $62.73 by 10:40 a.m. EST (1540 GMT), while U.S. West Texas Intermediate futures were down 70 cents at $57.66. Brent hit a two-year high of $64.65 a month ago and has since attracted record investment by fund managers. The market is continuing to watch U.S. crude production,which is nearing a record high, according to data last week. Additionally, drillers in the United States added two oil rigs in the week to Dec. 1,bringing the total count to 749, the highest since September, energy Services Company Baker Hughes said on Friday .The U.S. rig count, an early indicator of future output, has risen sharply from 477 active rigs a year ago after energy companies boosted spending plans for 2017. U.S. producers were encouraged during 2017 to increase activity as crude prices started recovering from a multi-year price slump after the Organization of the Petroleum Exporting Countries (OPEC) and some non-OPEC producers, including Russia, agreed to production cuts a year ago.Last week the producers agreed to extend those cuts of 1.8 million barrels per day (bpd) until the end of next year.

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