Global oil glut pres­sures prices; WTI be­low US$45

The China Post - - BUSINESS INDEX & -

Oil prices fell again Thurs­day in a glum mar­ket as the global over­sup­ply of crude oil looked en­trenched and de­mand prospects weak.

U.S. bench­mark West Texas In­ter­me­di­ate for Septem­ber de­liv­ery fell 49 U. S. cents to US$44.66 a bar­rel on the New York Mer­can­tile Ex­change, clos­ing be­low US$45 for the first time since March. The WTI con­tract was now barely US$1 above its low­est years.

Brent North Sea crude for Septem­ber, the in­ter­na­tional bench­mark, closed at US$49.52 a bar­rel in Lon­don, down seven cents from the day be­fore.

The crude glut is largely re­spon­si­ble for the roughly 50-per­cent de­cline in oil prices since mid-2014. The United States is pro­duc­ing crude at high lev­els and out­put by the Or­ga­ni­za­tion of the Petroleum Ex­port­ing Coun-

clos­ing

level

in

six tries ( OPEC) con­tin­ues to ex­ceed the car­tel’s quota of 30 mil­lion bar­rels per day.

In ad­di­tion, in­vestors were look­ing ahead to ad­di­tional sup­plies of oil com­ing into the mar­ket as part of last month’s his­toric deal be­tween six ma­jor pow­ers and Iran over its nu­clear pro­gram.

In ex­change for curb­ing its nu­clear pro­gram, Tehran would see the lift­ing of sanc­tions, which have slashed its oil ex­ports.

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