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Oil prices drop on ongoing oversupply, mercantile headwinds


SINGAPORE/TOKYO Oil prices hold nearby two-month lows on Monday amid worries that a tellurian wanton and polished product bolt would import on markets for some time to come.

International Brent wanton oil futures were trade during $45.58 per tub during 0657 GMT, down 11 cents from their prior close. U.S. West Texas Intermediate (WTI) wanton was during $44.11, down 8 cents a barrel.

Both benchmarks were tighten to two-month lows reached final week.

Traders pronounced that ongoing oversupply and flourishing mercantile headwinds were weighing on oil.

“Sentiment looks to have incited negative,” pronounced Matt Stanley of brokerage Freight Investor Services (FIS) in Dubai, nonetheless he combined that markets would expected sojourn volatile.

Barclays bank pronounced “global oil direct in Q3 16 is flourishing during reduction than one-third a rate it was in Q3 15, weighed down by malnutritioned mercantile growth”, adding that direct support from a OECD has faded, while expansion from China and India has slowed.

Morgan Stanley pronounced headwinds were flourishing for a second half of a year, heading to an expectancy of reduce oil prices. It forked to volatile U.S. supply, descending direct for ride fuels, and oversupply by refiners, quite in gasoline.

“As a result, wanton oil direct from refineries is underperforming product direct by a far-reaching margin,” a bank said, adding that flourishing mercantile risks combined serve to downside risks for oil.

A clever dollar and a fourth weekly arise in a U.S. oil supply count also weighed on prices, traders said. [USD/] [RIG/U]

Money managers cut their net prolonged U.S. wanton futures and options positions, that would distinction from rising prices, to a four-month low in a week to Jul 19, a U.S. Commodity Futures Trading Commission pronounced on Friday.

Libya’s hopes to boost wanton exports have been dealt a blow after a conduct of a National Oil Corporation (NOC) objected to a understanding between a supervision and internal guards to free pivotal ports.

(Reporting by Henning Gloystein and Osamu Tsukimori; Editing by Richard Pullin)

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