Oil prices fell 3 percent on Monday as Iraq announced record-high oil production feeding into a heavily oversupplied market, wiping out much of the gains made in one of the biggest-ever daily rallies last week. Brent crude, the global benchmark, was down 83 cents at $31.35 a barrel at 1247 GMT, losing 2.6 percent from its closing price on Friday, when Brent surged 10 percent. Iraq’s oil ministry told Reuters on Monday oil output had reached a record high in December.