Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Oil prices dip on ongoing oversupply, economic headwinds

Published 07/25/2016, 12:42 AM
Updated 07/25/2016, 12:42 AM
© Reuters. Smoke rises from State Oil Refiney Nico Lopez in Havana, Cuba

© Reuters. Smoke rises from State Oil Refiney Nico Lopez in Havana, Cuba

By Henning Gloystein and Osamu Tsukimori

SINGAPORE/TOKYO (Reuters) - Oil prices held near two-month lows on Monday amid worries that a global crude and refined product glut would weigh on markets for some time to come.

International Brent crude oil futures were trading at $45.59 per barrel at 0424 GMT, down 10 cents from their previous close. U.S. West Texas Intermediate (WTI) crude was at $44.09, also down 10 cents a barrel.

Both benchmarks were close to two-month lows reached last week.

Traders said that ongoing oversupply and growing economic headwinds were weighing on oil.

"Headwinds (are) growing for 2H16, hence our bearish oil bias," Morgan Stanley (NYSE:MS) said on Monday in a note to clients, pointing to resilient U.S. supply, falling demand for transport fuels, and oversupply by refiners, particularly in gasoline.

"As a result, crude oil demand from refineries is underperforming product demand by a wide margin," the U.S. bank said, adding that growing economic risks added to downside risks for oil.

A strong dollar and a fourth weekly rise in the U.S. oil rig count also weighed on prices, traders said. [USD/] [RIG/U]

Money managers cut their net long U.S. crude futures and options positions, which would profit from rising prices, to a four-month low in the week to July 19, the U.S. Commodity Futures Trading Commission said on Friday.

© Reuters. Smoke rises from State Oil Refiney Nico Lopez in Havana, Cuba

Libya's hopes to boost crude exports have been dealt a blow after the head of the National Oil Corporation (NOC) objected to a deal between the government and local guards to reopen key ports.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.