Oil prices fall on oversupply

Oil prices extended declines on Monday after two straight days of losses late last week as high production offset strong refinery runs, but a storm that could impact Gulf of Mexico operations supported US crude. Saudi Arabia, the world's biggest crude oil exporter, hinted late last week that it was ready to increase production above record levels to meet strong demand, if needed, pushing down prices. Fundamental data indicates that the oil market is oversupplied by over 2 million barrels per day. But it added that due to a recent rally in prices it had lifted its average 2015 Brent and WTI price forecasts to $60 and $55.10 per barrel respectively, up from $52.50 and $48.60 a barrel previously. Front-month US crude CLc1 had fallen 22 cents to $59.74 a barrel by 0605 GMT. Brent futures LCOc1 were down 21 cents at $63.66 a barrel, according Reuters.