Commodities
Oil prices extended losses from the prior session in European trade on Tuesday, with the U.S. benchmark sliding below the $43-level for the first time since April as a global glut of crude and refined products weighed on markets.
Crude oil for September delivery on the New York Mercantile Exchange fell to a session low of $42.87 a barrel, a level not seen since April 26. It was last at $42.91 by 08:03GMT, or 4:03AM ET, down 22 cents, or 0.51%.
A day earlier, New York-traded oil lost $1.06, or 2.4%, 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.
According to oilfield services provider Baker Hughes, 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.
Concerns over a rising gasoline inventories further weighed. 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.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for October delivery inched down 16 cents, or 0.35%, to $44.97 a barrel, after falling to a more than two-month low of $44.50 on Monday.
London-traded Brent futures have been under pressure 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.
Source Investing.com
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