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Investing.com - Oil futures ended Friday’s session at the lowest level in nearly three months, as concerns over a global supply glut intensified after data showed that the U.S. oil rig count rose for the fourth week in a row last week.
On the New York Mercantile Exchange, crude oil for delivery in September fell to a daily low of $43.74 a barrel, a level not seen since May 10, before recovering to end at $44.19 by close of trade, down 56 cents, or 1.25%.
Oilfield services provider Baker Hughes said late Friday that the number of rigs drilling for oil in the U.S. last week increased by 14 to 371, the fourth straight weekly rise and the seventh increase in eight weeks.
The renewed gain in U.S. drilling activity fueled speculation that domestic production could be on the verge of rebounding in the weeks ahead, underlining worries over a supply glut.
On the week, New York-traded oil futures lost $1.93, or 3.83%, after weekly U.S. supply data showed a surprising increase in gasoline inventories.
According to the U.S. Energy Information Administration, gasoline inventories rose by 0.9 million barrels, disappointing expectations for a decline of 0.8 million barrels.
Despite being in the midst of the peak summer-driving season in the U.S., gasoline stocks are well above the upper limit of the average range, according to the EIA.
The report also showed that total U.S. crude oil inventories fell by 2.3 million barrels last week. But at 519.5 million barrels, stockpiles are at historically high levels for this time of year, the EIA said.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for September delivery slumped 51 cents, or 1.1%, to settle at $45.69 a barrel by close of trade after dropping to an intraday low of $45.17, the weakest since May 11.
For the week, London-traded Brent futures declined $2.23, or 4.03%, as prospects of increased exports from Libya and Iraq added to concerns that a glut of oil products will cut demand for crude by refiners.
According to market experts, elevated stocks of fuel products amid slowing global demand growth is expected to keep prices under pressure in the near-term.
In the week ahead, oil traders will be focusing on U.S. stockpile data on Tuesday and Wednesday for fresh supply-and-demand signals.
Market players will also continue to monitor supply disruptions across the world for further indications on the rebalancing of the market.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Tuesday, July 26
The American Petroleum Institute, an industry group, is to publish its weekly report on U.S. oil supplies.
Wednesday, July 27
The U.S. Energy Information Administration is to release its weekly report on oil and gasoline stockpiles.
Friday, July 29
Baker Hughes will release weekly data on the U.S. oil rig count.
Investing.com - Oil futures ended Friday’s session at the lowest level in nearly three months, as concerns over a global supply glut intensified after data showed that the U.S. oil rig count rose for the fourth week in a row last week.
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