Oil prices fall on oversupply worries as U.S. rig count rises

By Keith Wallis
SINGAPORE, July 27 (Reuters) - Oil prices slipped lower in
early Asian trade on Monday after closing the previous session
at their lowest level since March on renewed oversupply concerns
after data showed U.S. drilling activity increased last week.
U.S. oil producers added 21 oil rigs last week, the biggest
rise since April 2014, oil services company Baker Hughes Inc
BHI.N said in on Friday. ID:nL1N1041JT
That was despite a 21 percent collapse in U.S. crude prices
since mid-June when prices hit $61 a barrel on June 23 leading
U.S. oil prices to enter a bear market. A 20 percent downturn is
considered by many traders to constitute a bear market.
U.S. crude for September delivery CLc1 was down 14 cents
at $48 as of 0024 GMT, after closing the previous session down
31 cents at $48.14, its lowest settlement since March 31 and
down 5.5 percent on the week.
Brent crude futures for September delivery LCOc1 fell 4
cent to $54.58 after ending the previous session 65 cents down,
the lowest close since March 19 and a drop of 4.3 percent for
the week.
Hedge funds and other money managers slashed long bets on
U.S. crude futures and options to the lowest level in five years
last week, as crude continued to tumble, the U.S. Commodity
Futures Trading Commission (CFTC) said on Friday.
ID:nL1N10420O
Crude oil exports from Iraq's south are on course for a new
monthly record this month having risen above 3 million barrels
per day (bpd) so far this month, loading data and an industry
source said on Friday. ID:nL5N10420C
Market dynamics are changing in OPEC countries, with an
increasing focus on earning diversification to protect state
revenues in a low crude oil price environment," ANZ said in a
report on Monday.
"Saudi Basic Industries Corp is looking at investing in U.S.
shale and some other options in China using coal to convert to
chemical products. The potential also exists for the Middle East
to become a larger refined product export hub," the ANZ note
added.
Iranian refining and petrochemical firms could be partially
sold off as part of a package of measures to attract foreign
investors once western sanctions officially end, Minister of
Industry, Mines and Trade Mohammad Reza Nematzadeh said at a
conference last week. ID:nL5N10434D
The state-owned Nigerian National Petroleum Corporation
(NNPC) will be soon be split into two entities - an independent
regulator and investment vehicle, a spokesman for Nigerian
President Muhammadu Buhari said on Saturday. ID:nL5N1050IX