Oil extended losses to multi-month lows on Monday on worries of oversupply as the Organization of the Petroleum Exporting Countries (OPEC) pumped at record levels in July, while weak China data stoked concerns about slower growth from China.

Oil output by the OPEC reached the highest monthly level in recent history in July, a Reuters survey showed, with Saudi Arabia and other key members showing no sign of wavering in their focus on ­defending market share instead of prices.

The lack of a plan by OPEC to make room for the return of more Iranian oil further fuelled supply worries.

Iran expects to raise output by 500,000 barrels per day (bpd) as soon as sanctions are lifted and by 1 million bpd within months, Iranian Oil Minister Bijan Zanganeh has said.

"The market seems to again focus on the supply situation ... one of the difficulties is that Iran may be coming back and there is no obvious sign that OPEC will make room for them," said Ric Spooner, chief market analyst at CMC Markets in Sydney.

Brent crude oil fell $1.17 to $51.04 a barrel by 0850 GMT, having touched a low of $50.85 earlier in the day, its weakest since January 30.

Reuters - Global Times