KPBN News

Oil prices continued to drop as supplies abound



The US benchmark, West Texas Intermediate (WTI) for September delivery, tumbled $1.06 to $43.13 a barrel on the New York Mercantile Exchange, the lowest level in three months. In London, North Sea Brent for September delivery hit its lowest level since May, losing 97 cents to settle at $44.72 a barrel on the Intercontinental Exchange. `You are really getting the hangover from last week's EIA inventory report,` said Bob Yawger of Mizuho Securities, referring to weekly figures released by the US Energy Information Administration (EIA). The EIA reported last week that US crude oil stockpiles fell by a less-than-expected 2.3 million barrels, while gasoline supplies surged during the US peak summer driving season. The EIA's weekly report showed that US gasoline inventories jumped by a surprise 911,000 barrels last week, hitting their highest level since April. `Gasoline is just so oversupplied right now, it's hard to make a bullish case as long as that is the case.` Analysts said the strong dollar was also weighing on demand for oil futures, as it makes the commodity more expensive for holders of other currencies. A rise in the number of active US crude rigs has also fuelled market concerns that the global supply glut will persist.Oilfield services company Baker Hughes said Friday that the number of rigs drilling for oil in the United States rose by 14 to 371 in the week ending July 22, the fourth straight weekly increase.
Editor: Ade Marboen
http://www.antaranews.com/berita/575025/harga-minyak-terus-menurun-karena-persediaan-berlimpah?utm_source=topnews&utm_medium=home&utm_campaign=news