Oil prices lower as persistent oversupply fears weigh

Commodities & Futures
© Reuters.  Oil prices lower as persistent oversupply fears weigh© Reuters. Oil prices lower as persistent oversupply fears weigh

Investing.com – Oil prices fell on Tuesday as concerns about oversupply continued to weigh, despite the American summer driving season getting underway.

were down 18 cents, or around 0.36%, to $ 49.64 a barrel by 07.52 GMT, after climbing above $ 50 per barrel earlier.

International benchmark futures were down 35 cents or 0.66% to $ 52.29 a barrel on the ICE Futures Exchange in London.

Ongoing oversupply concerns continued to pressure prices lower, analysts said.

Traders have questioned whether a decision by the Organization of the Petroleum Exporting Countries to extend a pledge to cut production by around 1.8 million barrels per day until the end of the first quarter of 2018 will be enough to reduce a massive global supply glut.

While OPEC’s move had been widely expected, some analysts had hoped producers would agree to longer or deeper cuts to drain a global glut.

So far, the production-cut agreement has had little impact on global inventory levels due to rising supply from producers not participating in the accord, such as Libya and Nigeria, and a relentless increase in U.S. shale oil output.

The number of active U.S. rigs drilling for oil has increased for 19 straight weeks, to 722, the highest since April 2015 and the longest run of increases ever, according to energy services firm Baker Hughes.

Prices found some support earlier after the American summer driving season got underway on the Memorial Day holiday on Monday.

The American Automobile Association has projected that 34.6 million people will drive 50 miles (80 km) or more from home during the end-of-month holiday period, most since 37.3 million in 2005.

Elsewhere on Nymex, for July fell to $ 1.6175 a gallon, while July was down 0.82% to $ 1.5539 a gallon.

Disclaimer:Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Let’s block ads! (Why?)

Commodities & Futures News

Leave a Reply

Your email address will not be published. Required fields are marked *