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Oil prices remain near April lows on ongoing oversupply

Published 2016-07-28, 09:45 p/m
© Reuters.  Oil prices remain near April lows on ongoing oversupply
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By Henning Gloystein

SINGAPORE, July 29 (Reuters) - Oil prices on Friday remained around April lows as slowing economic growth threatened to worsen ongoing oversupply of crude and refined products.

International Brent crude oil futures LCOc1 were trading at $42.78 at 0127 GMT, up 8 cents from their previous close. U.S. West Texas Intermediate (WTI) crude CLc1 was at $41.16, up 2 cents.

Brent hit its lowest since April in the previous session, at $42.56, while WTI hit a fresh low of $40.95 per barrel early on Friday, and both crude benchmarks are now down around 20 percent since their last peak in June. of ongoing oversupply, U.S. bank Goldman Sachs (NYSE:GS) GS.N said this week that it did not expect a big recovery in prices any time soon.

"We continue to expect that oil prices will remain in a $45 per barrel to $50 per barrel trading range through mid-2017 with near-term risks skewed to the downside," the bank said.

Despite this, some analysts said recent price falls in oil had been overdone, especially as demand remains strong despite concerns over future economic growth.

"Investors have become overly bearish on oil as U.S. production and gasoline inventories continue to rise. We think those concerns are unwarranted. Underlying demand in the U.S. remains robust," ANZ bank said.

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