Oil prices are falling fast. Here's why

Oil prices fall as supply from top three producers set to rise

USA crude futures have fallen by as much as 10% to about $66.50 a barrel, which is down from last week's $73.

Baker Hughes' weekly rig count, released on Friday, showed US energy companies added 15 new oil rigs to production last week, taking total drilling activity to its highest since March 2015.

In April, pact participants cut production by 52 percent more than required, with falling output from crisis-hit Venezuela helping OPEC deliver a bigger reduction than intended.

Crude oil production in the Latin American state has dropped to around 1.4 million barrels a day in recent months - a spectacular collapse of almost 40 per cent since 2015.

The oil price fell 2 per cent on Monday from $US76.17 to $US74.49, wiping out much of the gains over the past month. While the crude oil prices were low, the government repeatedly levied cess on fuel to fund its infrastructure and other development programs while keeping the annual budget deficit in check.

Still, there are some concerns surrounding political turmoil in Italy, and the potential for further instability there rattled the stock market and raised concerns over a possibly decline in European oil demand, said Flynn.

These are concerns about the tightness of global supply, especially in light of Venezuela's woes and the possible curtailment of Iranian exports, and the rising importance of the United States as an exporter, particularly to the major consuming region of Asia.

Warriors vs Rockets Game 5 Stream Online, Score, Schedule, Preview
A bruised left knee kept Andre Iguodala out for the second straight game, and Kevon Looney started in his place. D'Antoni wouldn't speculate on Paul's availability if the Warriors force Game 7 on Monday night in Houston .

The Department of Energy (DOE) bared on Tuesday the Philippines' "two-pronged strategy" to source petroleum products from Russian Federation and other non-OPEC countries "to establish a strategic petroleum reserve (SPR) to cushion the impact of the rising price of oil in the global market".

Baker Hughes (BHGE) on Friday reported that the number of active USA rigs drilling for oil (http://www.marketwatch.com/story/us-oil-rig-count-makes-biggest-weekly-climb-since-february-2018-05-25) rose 15 to 859 in the most recent week.

"The regulation will send demand for middle distillates such as diesel and marine gasoil soaring, and refiners will have to shift some of the products they will be processing from crude oil", said Oilprice.com quoting analysts.

Crude oil futures were hammered Tuesday in catch-up trade after the Memorial Day break.

Today, current price levels averaging around $60 to $70 per barrel allow shale oil producers to reinvest in drilling wells and add capacity with free cash flow rather than debt, according to Slaughter.

The number of rigs operating in USA oil fields rose by 15 to a total of 859 rigs last week, notching the highest level since March 2015, oilfield service firm Baker Hughes said in its weekly report on Friday. The U.S.is due to reimpose economic sanctions on Iran after recently deciding to withdraw from its nuclear pact with Tehran.

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