Oil falls to a new low of 3 months gluten concerns in refined products

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oil markets

Oil prices extended losses from the previous session in North American trading on Thursday, falling to a fresh three-month low amid ongoing concerns over excess global supply of oil and refined products.

Crude for September delivery on the New York Mercantile Exchange oil fell to a session low of $ 41.66 a barrel, a level not seen since April 20 It was last at $ 41.81 for 13: 35GMT, or 9:35 ET, down 11 cents, or 0.26%.

A day earlier, oil traded in New York lost $ 1.00, or 2.33%, after data from the US government revealed a surprise build in inventories of crude and gasoline last week.
The Energy Information Administration said crude inventories rose by a total of 1.7 million barrels last week to 521.1 million surprising barrels, which the IEA considers to be “historically high levels for this time of year”.

The report also showed that gasoline inventories rose by 452,000 barrels. Despite being in the middle of the peak summer season driving in the US, gasoline stocks are well above the upper limit of the average range, according to the EIA.

US oil has been under pressure in recent weeks as signs of an ongoing recovery in drilling activity US combined with high stocks of heavy fuel products.

Elsewhere, on the ICE Futures Exchange in London, the Brent oil for October delivery moved up 7 cents, or 0.16%, to $ 43.84 a barrel, after falling to a daily low of $ 43.51 before, the lowest since April 20 on Wednesday, Brent dropped $ 1.32 or 2.92%.

Brent traded-London futures have been under pressure recently as the prospects for increased exports from Libya and Iraq added to concerns that an excess of petroleum products will cut demand for oil refineries.

Oil prices have fallen nearly 18% from its peak above $ 50 in early June as high inventories of gasoline products cloud the future outlook for crude.

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