The Economy Ministry of Germany in Berlin said production dropped 1.2 percent in October after having fallen 0.7 percent during the month prior. The data was markedly worse than projected as the median forecast of 38 economists polled by the news service issued projections of 0.7 percent.
Reduced supplies in the U.S., the globe's largest user of the energy commodity, dropped by 5.59 million barrels for the week ended November 28, according to the Energy Information Association, which is an arm of the U.S. Energy Department. But prospects are high for demand to rise because the seasonal change is adjusting from periods of summer driving to winter heating.
"There has been optimism about both the American and European economies, but these German numbers are raising concern," chief market strategist Bill O'Grady with Confluence Investment Management in St. Louis told the news source on Monday. "The Brent-WTI issue has almost become the most important issue in the market."
At 11:25 a.m. on Monday, West Texas Intermediate crude oil futures edged up 0.07 percent, a 7-cent lift to $97.72 per barrel. Brent crude oil futures fell 1.51 percent, a $1.68 loss to $109.93 per barrel.
Supplies are poised to climb, particularly from the North Sea, where daily shipments of 11 main grades depart.
Next month, crude from the North Sea for loading is poised to climb by 3.4 percent, according to Bloomberg.
Production of the 11 main grades is poised to amount to more than 64 million barrels, which equals 2.07 million barrels per day. Earlier this month the total amounted to 2 million barrels.
"The North Sea production is coming back and it should put more supplies in the marketplace," senior market analyst Phil Flynn with the Price Futures Group in Chicago told the news source on Monday. "That's going to pressure Brent. The Brent-WTI spread continues to come in."
Coming off strong weekly gains
The Wall Street Journal reports the energy commodity is coming off gains of 5.3 percent last week as expectations of strong demand climbed.
Friday's upward spike was linked with a U.S. employment market report that was stronger-than-forecast.
Production of oil from the U.S. has pushed to all-time high levels as horizontal drilling techniques and hydraulic fracturing have helped energy producers access increased amounts of supplies that are within shale-oil fields.
Two key reports slated for release this week
The price of the energy commodity is likely to be impacted by monthly reports issued by the Organization of the Petroleum Exporting Countries and the International Energy Agency, both of which are forecast for release this week.
The OPEC data is slated to come out on Tuesday and the IEA figures are expected to come out on Wednesday.
Significant find in Colombia
Reuters reports two companies announced on Monday that they believe they have located oil fields holding as much as 1.3 billion barrels of the energy commodity in Southeast Colombia.
Ecopetrol, a state-owned company in host nation Colombia, and Talisman Energy Inc, a Canada-based firm, said that roughly 10 percent of the site's holdings may be exploited.
Colombia is positioning itself to exploit both shale oil and gas, in part because reserves in the nation are slipping.
The top official of the Canadian company emphasized the importance of what the company has discovered.
"This is a significant discovery … that I think will be beneficial to both our companies," chief executive officer Hal Kvisle with Talisman told the news source. "There are significant reserves that can be booked at the proven level but also at the resource level."
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