Oil Prices Pressured by Supply Glut Worries

10-Aug-2015

LONDON—Oil prices rose on Monday but remained under pressure by mixed Chinese economic data and widening concerns about the global glut of oil.

Over the weekend, China released disappointing export and factory numbers, clouding the economic outlook for the world’s second-biggest oil consumer. It reported healthy oil imports data but analysts said the uptick was because China was taking advantage of the low prices.

Meanwhile, the number of oil drilling rigs in the U.S. rose last week, underscoring concerns that the supply glut is unlikely to abate soon.

“The prospect that crude oil prices will retest the lows hit earlier in the year has caught the market off guard,” said David Hufton at brokerage PVM. “Sadly there is no relief in sight and the technical knives are out, with the years lows well within range.”

Brent crude, the global oil benchmark, rose 0.6% to $48.92 a barrel on London’s ICE Futures exchange. On the New York Mercantile Exchange, West Texas Intermediate futures were trading broadly flat at $43.88 a barrel. The contract lost about 7% last week and fell within less than a dollar from its March lows. (by GEORGI KANTCHEV, Wall Street Journal)


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