Crude prices slip lower amid fresh supply glut worries

Published 2016-07-01, 07:58 a/m
© Reuters.  Crude oil edges lower on renewed oversupply concerns
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Investing.com - U.S. oil futures slipped lower on Friday, as concers over a global supply glut resurfaced amid rising production levels in Nigeria and Canada.

U.S. crude futures for August delivery edged down 0.19% to $48.24 a barrel.

On the ICE Futures Exchange in London, the September Brent contract slipped 0.18% to $49.65 a barrel, off the previous session’s one-month trough of 46.95.

Oil prices weakened as Nigeria production slowly began to rebound as no new attacks were perpetrated since the June 16 ones which had brought local output to the lowest level in 30 years.

Oil sands output in Canada also moved higher after wildfires hit production in the past two months.

In addition, a Reuters survey showed that OPEC production rose to a record high of 32.82 million barrels per day in June.

Meanwhile, investors remained cautious as markets continued to recover from Britain’s shock decision last week to leave the European Union.

Bank of England Governor, Mark Carney, indicated on Thursday that more stimulus may be needed over the summer, sparking expectations for an upcoming rate cut.

Separetely, sentiment weakened after data on Friday showed that China’s Caixin manufacturing purchasing managers’ index fell to 48.6 in June from 49.2 the previous month, compared to expectations for a downtick to 49.1.

At the same time, China’s official manufacturing PMI came in at 50.0 last month from 50.1 in May, in line with expectations.

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