Oil prices fall after US Shale output increases

Oil prices fell on Monday after output from Shale Industry in US increased by more than 15 percent against mid-2016.

U.S. West Texas Intermediate (WTI) crude futures were at $57.10 a barrel at 0019 GMT, down 25 cents, or 0.4 percent, from their last settlement.

Brent crude futures, the international benchmark for oil prices, were down 32 cents, or 0.5 percent, at $63.08 a barrel.

The largest concern for oil has been the increasing production in US Shale rigs. Some say that the production has peaked for US Shale Oil Industry, whereas other say it is bound to increase in the coming years. Despite different challenges, the fracking has done wonders for US Shale Oil production in the recent years.

Experts warn that US Crude production has been growing again and again and will be higher this year than last and is expected to be higher again in 2018.

Rising U.S. output threatens to undermine efforts led by the Organization of the Petroleum Exporting Countries (OPEC) and a group of non-OPEC producers, most importantly Russia, to support prices by withholding supplies.

OPEC and its allies started withholding supplies last January and currently plan to continue doing so throughout 2018.