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By Michael Poulson, A/S Global Risk Management

Crude oil prices closed lower for the fourth straight session as oversupply concerns triggered a sell-off.

Baker Hughes released their total oil rig count data and it showed that US drillers put 11 rigs into operation the week prior, making it the 20th straight week of additions - a record.

US President Donald Trump pulled out of the Paris agreement, a climate change accord that was agreed in 2015. The possible implications are for higher US production down the road.

US oil production figures showed that the country's production increased by 500k bpd to 9.34m bpd - the highest since August 2015. This comes amid the OPEC/NOPEC agreement the week prior to extend the 1.8m bpd oil cuts by another nine months beginning June 2017. However, oil prices ended the week about 10% lower. US production is expected to cross the 10m bpd mark by next year. Some analysts have estimated the additions to be around 1 to 1.5m bpd.

Oil inventories in the US fell for an eighth straight week. This provided a small retracement during the late part of the week but the market soon disregarded this as inventories tend to fall during this part of the year due to the US driving season.

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A/S Global Risk Management is a provider of customised hedging solutions for the management of price risk on fuel expenses. The company has offices in Denmark and Singapore. For further details about its risk management products and services, please call +45 88 38 00 00 or email hedging@global-riskmanagement.com.