Soaring energy costs put pressure on US Administration while country accelerates drilling activities, adding 6 more rigs last week.
Oil prices continued the downward trend on Monday, amid a tight market with players now focused on whether the Biden Administration will manage to increase supply to reduce energy costs in the US.
International benchmark Brent crude was trading at $81.29 per barrel at 0634 GMT for a 1.07% loss after closing the previous session at $82.17 a barrel.
American benchmark West Texas Intermediate (WTI) was at $78.92 per barrel at the same time for a 0.97% drop after trade ended at $79.69 a barrel in the previous session.
The US has accelerated upstream activities with a rise in the number of oil rigs for a third consecutive week.
According to the latest data released by oilfield services company Baker Hughes, the number of oil rigs, an indicator of short-term production in the country, increased by six to 556 for the week ending Nov. 12. The number of US oil rigs rose by 218 compared to one year ago.
The Biden Administration, under increasing pressure from soaring energy costs, is trying to find a solution that may include tapping the country’s strategic reserves or restricting US exports.
Last week, Biden said he told his top economic advisers to focus on reducing high energy prices, which he blames for the country’s increasing inflation.
Biden has already exhausted some solutions to tackle this problem. He repeatedly asked the Organization of Petroleum Exporting Countries (OPEC) and its allies, also known as OPEC+, to increase the group’s output. However, the group did not relent and agreed to adhere to its production pact of 400,000 barrels per day in December.