Investing.com - U.S. oil futures fell to fresh three-month lows on Friday, as concerns over a global glut of oil and refined products continued to dominate sentiment.
U.S. crude futures for September delivery dropped 0.80% to a three-month low of $40.83 a barrel.
On the ICE Futures Exchange in London, the October Brent contract tumbled 0.99% to $42.80 a barrel, the lowest since April.
Crude prices remained under pressure after the Energy Information Administration said that crude oil inventories rose by a surprising 1.7 million barrels last week to 521.1 million barrels, which the EIA considered to be “historically high levels for this time of year”.
The report also showed that gasoline inventories increased by 452,000 barrels. Despite being in the midst of the peak summer-driving season in the U.S., gasoline stocks are well above the upper limit of the average range, according to the EIA.
U.S. oil has been under pressure in recent weeks as signs of an ongoing recovery in U.S. drilling activity combined with elevated stocks of fuel products weighed.
Oil prices are down nearly 18% since peaking above $50 in early June, as high inventories of gasoline products cloud the future outlook for crude.