"Crude oil production rose to another record, while drilling activity picked up again".
At Multi Commodity Exchange, crude oil for delivery in June traded Rs 10 or 0.22 per cent lower, at Rs 4,507 per barrel in 2,252 lots.
For the week, WTI was on track for a 1.5% fall, adding to last week's near 5% decline, while Brent was set to rise 1.3%, widening the spread between the two benchmarks.
There is some evidence to suggest that this has happened in recent weeks, with vessel-tracking data compiled by Thomson Reuters Oil Research and Forecasts pointing to record arrivals of USA crude in Asia in June.
The Permian basin, which stretches across West Texas and eastern New Mexico, is the largest USA oilfield.
The United States accounted for more than half of that decline, as US crude oil and other liquids inventories decreased by 162 million barrels over that period.
USA futures prices ended last week at their lowest finish since April on the back of rising production and the possibility that OPEC and its allies may decide to boost output, but the price of the global marker crude, Brent, edged higher.
About 883,000 barrels per day (bpd) of USA crude is expected to land at Asian ports in June, up from 769,000 bpd in May, which was the previous high for US crude exports to Asia. The U.S. accounted for more than half of that decline, as U.S. crude oil and other liquids inventories decreased by 162 MMBbl over that period.
In Europe, August Brent crude fell 77 cents, or 1%, to $US76.79 a barrel.
Concerns about growing U.S. crude production and a glut trapped inland due to a lack of pipeline capacity have pressured prices of WTI, doubling its discount to Brent over the course of a month.
Futures in NY fell 1.8 percent, set for the first monthly drop since February.
US President Donald Trump also urged Opec to increase production which both Kapadia and Kelty believe had an important impact on driving prices down.
According to General Electric's Baker Hughes energy services firm, US drillers added two oil rigs in the week to June 1, bringing the total to 861, the most since March 2015.
There were 197 gas-seeking rigs and two miscellaneous rigs, creating a total rig count of 1,060, up 144 from this time previous year, the highest count since March 2015.
The speculator group cut its combined futures and options position in NY and London by 50,937 contracts to 370,980 during the week.
Russia would be able to raise its oil output within months to levels last seen before a global production-cutting deal took effect if there is a decision to unwind the pact, a Russian Energy Ministry official said.