Crude prices move lower on supply glut concerns

Published 2016-05-13, 07:30 a/m
© Reuters.  Crude prices decline as supply glut concerns re-emerge
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Investing.com - U.S. oil futures moved lower on Friday, as renewed concerns over a global supply glut and a stronger U.S. dollar weighed.

U.S. crude futures for June delivery were down 1.13% at $46.17 a barrel, off the previous session’s six-month high of 47.02.

On the ICE Futures Exchange in London, the July Brent contract dropped 0.81% to $47.68 a barrel, off Thursday’s two-week high of 48.18.

Oil prices were hit after Russia warned on Friday that a global crude supply glut could last into next year.

In Canada, crude production outages from oil sand fields from forced closures due to wildfires were still over 1 million bpd as of Wednesday, although operators said they were gradually ramping up output.

Shell (LON:RDSa) Canada and Suncor announced on Wednesday that they had resumed oil production but at a limited rate.

Meanwhile, the U.S. dollar remained supported ahead of U.S. reports on retail sales, producer prices and consumer sentiment due later in the day.

The greenback shrugged off a report by the U.S. Department of Labor showing that the number of individuals filing for initial jobless benefits in the week ending May 6 increased by 20,000 to 294,000 from the previous week’s total of 274,000.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.16% at 94.27.

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