Oil Prices Extend Losses On Fresh Supply Glut Fears
Sumaira FH Published July 27, 2016 | 05:00 PM
LONDON, (APP - UrduPoint / Pakistan Point News - 27th july,2016) : Oil prices slid to fresh three-month lows Wednesday as worries about a global oversupply resurface ahead of the release of US stockpiles data later in the day. With the US summer driving season -- when demand peaks -- drawing to a close investors are growing increasingly concerned that stocks in the world's top crude consumer remain at elevated levels. The Energy Information Administration is due to release a report Wednesday, with a survey of analysts warning gasoline inventories rose in the previous week, while oil supplies dipped for a tenth week. The EIA last week announced a smaller-than-forecast drop, which sparked a sell-off in the commodity. On Wednesday at around 1115 GMT, US benchmark West Texas Intermediate was down 29 cents at $42.63 while Brent fell 51 cents to $44.36.
The losses come after a three-day sell-off. "The general driver behind the negativity seems to be the excess crude and gasoline stockpiles," Angus Nicholson, a markets analyst at IG Ltd.
in Melbourne, said. "The market is very much in a down trend and it doesn't look like it's going to reverse at the moment.
There is some key technical support around $40 a barrel." Adding to the downward pressure was a pick-up in the Dollar following a series of strong US economic figures as well as an increase in the number of rigs coming online, meaning more production. After topping $50 a barrel early last month on the back of output disruptions, the cost of crude has tumbled about 15 percent in recent weeks as the crucial US holiday driving season comes to an end and global demand remains weak. It had fallen to near 13-year lows below $28 in February, as world markets were crippled by worries over China's economy, weak demand, tepid global growth and a supply glut.
Related Topics
Recent Stories
At least 10 people killed in Brazil fire: officials
Shahzaib Rind calls on Deputy Speaker Balochistan
Ahsan chairs 13th CPEC-JCC preparatory meeting, reviews arrangements for high-le ..
DC Tharparkar inaugurates anti-polio campaign
HDA Mehran workers demand salaries
Taxila police nab motorcycle lifter gang
Inter-university weightlifting championship kicks off at SAU
Walk held in a series of enrollment campaigns
Team from Gaza mediator Egypt arrives in Israel for truce talks
Kids murders: IHC orders psychiatric examination of mother
Health minister credits PML-N for advancements in organ transplantation
Court grants interim bail to Azam Swati in cyber crime case
More Stories From World
-
At least 10 people killed in Brazil fire: officials
2 minutes ago -
Team from Gaza mediator Egypt arrives in Israel for truce talks
6 minutes ago -
Kenya flood death toll since March climbs to 70
5 minutes ago -
Two Kyiv hospitals evacuating over feared Russian strikes
1 minute ago -
Junta-led Burkina Faso suspends BBC, Voice of America for two weeks
1 hour ago -
Romania court opens way for start of influencer Tate's trial
1 hour ago
-
Kenya flood death toll since March climbs to 70
1 hour ago -
At least 10 people killed in Brazil fire: officials
1 hour ago -
Russia targets Ukraine railways as Western aid due to arrive
2 hours ago -
Miner Anglo American rejects BHP's near $39-billion takeover bid
2 hours ago -
At least 10 people killed in Brazil fire: officials
2 hours ago -
Junta-led Burkina Faso suspends BBC, Voice of America for two weeks
2 hours ago