Oil loses more ground

16th June 2016, Comments 0 comments

Oil fell for the sixth straight session Thursday on lingering worries over weaker-than-expected crude demand in top consumer the United States.

At about 1015 GMT, Brent North Sea crude for delivery in August fell 62 cents at $48.35 a barrel.

US benchmark West Texas Intermediate (WTI) for July delivery also lost 62 cents to $47.39 a barrel compared with Tuesday's close.

"Oil prices are falling today for the sixth day straight, making this their longest losing streak since February," said Commerzbank analyst Carsten Fritsch.

The market had slid Wednesday after the US government's Department of Energy said commercial inventories fell 900,000 barrels in the week ending June 10.

That dashed market expectations for a large gain of 2.33 million, according to analysts.

After almost doubling between February and last week, WTI has plunged eight percent from an 11-month high, while Brent has lost more than six percent from an eight-month peak.

Supply-side fears have increased, with Canada's output likely to normalise as wildfires that hit its oil region subside.

Meanwhile, Nigerian rebels, who have been attacking crude installations, consider peace talks with the government.

Selling pressure has been inflamed by turmoil on stock markets as traders grow increasingly fearful that Britain will vote next week to leave the European Union, which many warn could precipitate another global rout.

Federal Reserve boss Janet Yellen on Wednesday sounded a warning about the possible impact of a "Leave" vote as the US central bank lowered its economic growth and interest rate projections over the next few years.

A Bank of Japan decision to hold steady on monetary policy despite the weak economy has also added to uncertainty, analysts said.

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© 2016 AFP

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