Oil prices fall amid rising OPEC, US output

Crude prices fell on Monday amid rising supply from OPEC and the United States, outweighing concerns that falling Iranian output will tighten markets once US sanctions come into effect from November.

Global benchmark Brent crude was down 18 cents at $77.46/bbl, while WTI crude also slipped 18 cents to $69.62/bbl by 10.40 UAE time.

Output from the Organization of the Petroleum Exporting Countries (OPEC) rose 220,000 barrels per day (bpd) between July and August, to a 2018-high of 32.79 million bpd, according to a Reuters survey.

The output increase has been supported by a recovery in Libyan production and exports from Iraq hitting a record high.

"Benchmark prices are caught between the supportive factor of pending US sanctions on Iran and the negative risks that a trade war blow-out could pose to commodity demand," Timothy Fox, head of research and chief economist, Emirates NBD, said in a note to its clients.

"The deterioration in Iranian output in August will add more conviction to a tightening story over the remainder of the year and into 2019, making long calendar spreads attractive again," he added.

Meanwhile, energy services firm Baker Hughes said last week that US drillers had increased the rig count by two units to 862 for the first time in three weeks.

The increased rig count has improved US crude oil production by more than 30 percent since mid-2016, to 11 million bpd, it added.