Monday, 25 July 2016

Oil languishes near 3-month lows amid glut concerns

Oil prices extended losses from last week in European trade on Monday, as analyse over a global supply glut increase after data showed that the U.S. oil rig count rose for the fourth week in a row last week.

Crude oil for September delivery on the New York Mercantile Exchange fell to a session low of $43.98 a barrel. It last traded at $44.02 by 08:03GMT, or 4:03AM ET, down 17 cents, or 0.38%.

On Friday, New York-traded oil fell to $43.74, a level not seen since May 10, amid signs of an ongoing recovery in U.S. drilling activity.

CrudeOil News- SapForex24

Oilfield services provider Baker Hughes said late Friday that the number of rigs drilling for oil in the U.S. last week increased by 14 to 371, the fourth straight weekly rise and the seventh increase in eight weeks.

The U.S. benchmark lost $1.93, or 3.83%, last week, after weekly supply data showed a surprising increase in gasoline inventories.

According to the U.S. Energy Information Administration, gasoline inventories rose by 0.9 million barrels, unsatisfactory expectations for a decline of 0.8 million barrels.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for October delivery inched down 14 cents, or 0.3%, to $45.95 a barrel, after falling to a more than two-month low of $45.17 on Friday.

London-traded Brent futures declined $2.23, or 4.03%, last week, as prospects of increased exports from Libya and Iraq added to concerns that a glut of oil products will cut request for crude by refiners.


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