Brent crude dropped again in price on Monday, shedding $1.09 to close at $60.82 per barrel.
Also, the oil output of the Organisation of Petroleum Exporting Countries fell to an eight-year low in September after attacks on Saudi Arabia oil plants cut production.
It was further learnt that crude oil in OPEC basket fell to $62.31, dropping by $0.04 when compared to what it traded for the preceding day.
On the drop in OPEC output, reports say that the development deepened the impact of a supply pact and the United States sanctions on Iran and Venezuela.
The 14-member OPEC had pumped 28.9 million barrels per day this month, survey showed that it’s down by 750,000bpd from August’s revised figure and the lowest monthly total since 2011.
The September 14 attacks on two Saudi oil plants shut down 5.7 million bpd of production and sent crude prices up 20 per cent to $72 a barrel on September 16.
The price had since fallen to $61, near levels before the Saudi attack, pressured by a rapid production restart and concern about slowing demand.
It was also learnt that traders were not particularly concerned about risk premium in oil; rather the focus seemed to be shifting back to the demand dynamics and the risk of further downgrades.