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Oil prices extend losses on high supplies

Jul 25 2016 14:14

London - Oil prices fell on Monday on a lingering global supply glut that last week sent the market tumbling to 2.5-month low points.

Around 13:45, US benchmark West Texas Intermediate for delivery in September was down 32 cents at $43.87 a barrel.

Brent North Sea crude for September lost 35c to $45.34 a barrel compared with Friday's close.

"Crude oil markets have been under pressure as oil supplies have started growing with the resumption of output from the capacity lost due to wildfires in the Canadian oil sands," said EY energy analyst Sanjeev Gupta.

Both contracts sank on Friday after a report showed the number of active US installations rose for a fourth straight week.

Gupta said reports of increased production from Iraq have further weighed on prices.

Official US data last week meanwhile showed that while American crude supplies have decreased, gasoline stocks remain high even during the country's peak demand season for motor fuel.

Analysts added that a strong dollar was heaping additional pressure on oil futures as it makes dollar-denominated crude more expensive for holders of other currencies.

commodities  |  markets  |  oil
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