Oil prices fall on dimming prospect of output restraint

Oil prices fell in early trading on Monday as the chances of Middle East producers agreeing to curb overproduction appeared to fade, while US output remains stubbornly high. Front month US West Texas Intermediate (WTI) crude futures were trading at USD 36.38 per barrel at 0302 GMT, down 1.1 percent or 41 cents cents from their last settlement.

International Brent futures were down 0.9 percent or 34 cents at USD 38.33 a barrel. The falls extended a 4 percent tumble on Friday when Saudi Arabia said it would only participate in a global freeze of its output if its rival Iran also took part, something Tehran has so far dismissed.

The falls extended a 4 percent tumble on Friday when Saudi Arabia said it would only participate in a global freeze of its output if its rival Iran also took part, something Tehran has so far dismissed.

Adding to concerns of a global glut which has pulled down prices by as much as 70 percent since 2014, US production has remained high despite steep cuts in drilling for new reserves as well as a jump in bankruptcies. "The US oil rig count dropped further this week, with a total 10 rigs idled," Goldman Sachs said.

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