Oil prices fall on oversupply worries

Oil prices fell on Monday. Investors are looking to the US Federal Reserve for direction this week. A weaker dollar makes dollar-denominated commodities, including oil, cheaper for consumers using other currencies. Brent crude for September LCOc1 was down 2 cents at $54.60 a barrel as of 0655 GMT. US crude for September CLc1 was down 12 cents at $48.02. Sparking new worries about a global glut, US oil producers added 21 drilling rigs last week, the biggest rise since April 2014. The increase in drilling activity came despite a 21 per cent collapse in US crude prices from about $61 a barrel in mid-June. A 20 per cent downturn is considered by many traders to constitute a bear market, according to Reuters.

-SRS