Oil prices fall further as supply concerns linger

3rd August 2015, Comments 0 comments

Oil prices fell Monday on persistent concerns about the global supply glut, analysts said.

US benchmark West Texas Intermediate for delivery in September dropped 68 cents to $46.44 a barrel.

Brent North Sea crude for September slid $1.10 to stand at $51.11 a barrel in London afternoon deals.

Prices were facing downward pressure following "signs that top producers in the Middle East were continuing to pump at record levels despite a growing global glut", said Singapore's United Overseas Bank in a market commentary.

Oil prices had already dived on Friday after Abdullah El-Badri, secretary-general of the Organization of Petroleum Exporting Countries, said the group would not cut output in response to lower prices.

Analysts said the statement shows the 12-nation OPEC, led by kingpin Saudi Arabia, is determined to defend its market share as it fends off competition from US shale oil.

At its most recent meeting in Vienna in June, OPEC kept its output levels of around 30 million barrels a day despite the supply glut that has depressed oil prices.

Crude futures are under pressure also owing to the strength of the US currency, which makes dollar-priced oil more expensive to holders of weaker units, dampening demand.

The dollar has picked up steam on expectations the Federal Reserve will raise US interest rates later this year.

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© 2015 AFP

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