Oil prices fell on Monday, hitting two-month lows, pressured by rising Canadian supplies, a higher U.S. oil rig count, and cuts in bullish hedge fund bets on crude.
Hundreds of thousands of new barrels of crude have begun arriving in Alberta's oil sands region, crowding pipelines as producers recover from wildfires that crippled output two months ago.
The rising Canadian output pressured prices even though traders said data from market intelligence firm Genscape showed a drawdown of 488,625 barrels at the Cushing, Oklahoma delivery hub for U.S. crude futures during the week to July 8.
Also pressuring crude prices, data on Friday showed the U.S. oil rig count rose last week for the fifth time in six weeks. U.S. oil company bankruptcy filings in June hit their lowest for this year, data showed. Both factors suggested drillers were cranking out more crude.
Other data from Friday showed hedge funds cut bullish bets on U.S. crude to the lowest in four months.