Oil prices extend losses on fresh supply glut fears

AFP, LONDON: Oil prices slid to fresh three-month lows yesterday as worries about a global oversupply resurface ahead of the release of US stockpiles data later in the day.
With the US summer driving season -- when demand peaks -- drawing to a close investors are growing increasingly concerned that stocks in the world's top crude consumer remain at elevated levels.
The Energy Information Administration is due to release a report Wednesday, with a survey of analysts warning gasoline inventories rose in the previous week, while oil supplies dipped for a tenth week. The EIA last week announced a smaller-than-forecast drop, which sparked a sell-off in the commodity.
On Wednesday at around 1115 GMT, US benchmark West Texas Intermediate was down 29 cents at $42.63 while Brent fell 51 cents to $44.36. The losses come after a three-day sell-off.
"The general driver behind the negativity seems to be the excess crude and gasoline stockpiles," Angus Nicholson, a markets analyst at IG Ltd. in Melbourne, said.
"The market is very much in a down trend and it doesn't look like it's going to reverse at the moment. There is some key technical support around $40 a barrel."

Oil prices extend losses on fresh supply glut fears

AFP, LONDON: Oil prices slid to fresh three-month lows yesterday as worries about a global oversupply resurface ahead of the release of US stockpiles data later in the day. With the US summer driving season -- when demand peaks -- drawing to a close investors are growing increasingly concerned that stocks in the worlds top crude consumer remain at elevated levels. The Energy Information Administration is due to release a report Wednesday, with a survey of analysts warning gasoline inventories rose in the previous week, while oil supplies dipped for a tenth week. The EIA last week announced a smaller-than-forecast drop, which sparked a sell-off in the commodity. On Wednesday at around 1115 GMT, US benchmark West Texas Intermediate was down 29 cents at $42.63 while Brent fell 51 cents to $44.36. The losses come after a three-day sell-off. The general driver behind the negativity seems to be the excess crude and gasoline stockpiles, Angus Nicholson, a markets analyst at IG Ltd. in Melbourne, said. The market is very much in a down trend and it doesnt look like its going to reverse at the moment. There is some key technical support around $40 a barrel.