U.S. oil futures fall to 15-week low as supply glut concerns weigh

U.S. oil futures fell to the lowest level since April on Tuesday, as ongoing worries over ample supplies and high domestic oil production drove prices down.

 

On the New York Mercantile Exchange, crude oil for September delivery hit a session low of $50.13 a barrel, a level not seen since April 4, before trading at $50.39 during European morning hours, down 5 cents, or 0.09%. A day earlier, Nymex oil futures lost 77 cents, or 1.5%, to end at $50.44.

Market players looked ahead to fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of demand in the world’s largest oil consumer. The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show crude stockpiles fell by 2.2 million barrels in the week ended July 17.

According to industry research group Baker Hughes (NYSE:BHI), the number of rigs drilling for oil in the U.S. declined by seven last week to 638, snapping two weeks of gains. Elsewhere, on the ICE Futures Exchange in London, Brent oil for September delivery tacked on 4 cents, or 0.07%, to trade at $56.69 a barrel.

On Monday, London-traded Brent futures slumped to $56.33, the lowest since July 7, before closing at $56.65, down 45 cents, or 0.79%, amid concerns a resumption of Iranian oil exports will add to a global glut. Iran and six world powers reached a long-awaited nuclear deal last week that would end sanctions on Tehran in exchange for curbs on the country's disputed nuclear program.