WASHINGTON (dpa-AFX) - Crude oil prices dropped to a two-week low on Monday as global growth worries and recent data showing a jump in U.S. oil rigs count raised concerns about energy demand.
A Chinese government report showing the profits of industrial companies in the country to have shrunk for a second straight month in December weighed on stock markets and took a toll of crude oil as well. The Chinese government recently said that it would increase stimulus to revive growth.
Meanwhile, U.S.-China trade talks are set to resume in Washington this week. Investors are hoping for some positive outcome from the discussions.
Crude oil futures for March ended down $1.70, or 3.2%, at $51.99 a barrel.
On Friday, crude oil futures for March ended up $0.56, or 1.1%, at $53.69 a barrel.
Brent crude was down by about 2.8%, at $59.93 about an hour ago.
On Friday, Baker Hughes said that U.S. companies added rigs for the first time in 2019. This signals a possibility of a further increase in crude output in the U.S.
Late last year, it was reported that U.S. crude oil production hit a record 11.9 million barrels per day. Considering the consistent rise in crude output, it looks the U.S. will become a net energy exporter in 2020.
Last week, the Energy Information Administration released a report that showed crude inventories increased by 7.97 million barrels in the week ended January 18.
EIA also said that gasoline stockpiles saw an increase of 4.05 million barrels in the week, rising to a record high of 259.6 million barrels.
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