Oil prices extend losses on glut worries

New York, Aug 3 – Oil prices reversed early gains to end lower on Tuesday, with the US oil settling below $40 a barrel for the first time since April, as concerns about a supply glut continued to weigh on the market.

US oil initially rose more than two per cent in the early trading on Tuesday as the dollar index hit a multi-week low, but slid to the red territory on persistent worries about a global supply glut, Xinhua news agency reported.

Traders expect the Energy Information Administration (EIA) to report on Wednesday that US crude inventories fell 1.4 million barrels last week after a surprise build for the previous week that broke a nine-week drawdown.

However, US crude stockpiles will remain at the highest season level in at least two decades.

The West Texas Intermediate for September delivery dipped $0.55 to settle at $39.51 a barrel on the New York Mercantile Exchange, while Brent crude for October delivery decreased $0.34 to close at $41.80 a barrel on the London ICE Futures Exchange.


Posted by on August 3, 2016. Filed under State. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.