Oil falls towards USD44, lowest since May, on glut worries

تم نشره في Tue 26 July / Jul 2016. 12:00 AM
  • Oil Price Fluctuate - (Sputnik News)

LONDON— Oil on Tuesday hit its lowest since May, falling towards USD44 a barrel, pressured by concerns that a long-awaited rebalancing of the market would be delayed due to excess supply.

Brent crude is still up more than 60 per cent from a 12-year low near USD27 in January, but the rally has petered out on signs that the supply glut will persist and as economic jitters raised concern about the strength of oil demand.

Global benchmark Brent LCOc1 was trading at USD44.44 a barrel at 1007 GMT, down 28 cents. It fell to USD44.28 intraday, the lowest since May 10. U.S. crude CLc1 was down 43 cents at USD42.70, having fallen to its lowest since April earlier.

Britain's BP (BP.L), the first oil major to report second-quarter results, on Tuesday reported lower-than-expected profit and said its refining margins were the weakest for a second quarter in six years.

Record crude output from the Organization of the Petroleum Exporting Countries, a glut of refined products and signs of more drilling activity in the United States in the face of low oil prices have added to concern about excess supply.

U.S. drillers added oil rigs for a fourth consecutive week. The decline in U.S. output has been key to balancing a market weighed by excess supply for two years.