* Oil prices to stay below $70 a barrel in 2015/16 - NAB
* Iraqi oil fields heading for new monthly output record
(Updates prices)
By Keith Wallis
SINGAPORE, July 27 (Reuters) - Oil prices fell on Monday
after closing the previous session at their lowest levels since
March on renewed oversupply concerns from the United States and
Iraq, although a weaker dollar helped to limit deeper losses.
Investors are looking to the U.S. Federal Reserve for
direction this week. The central bank starts a two-day policy
meeting on Tuesday that could result in a September interest
rate hike that would strengthen the greenback.
"The markets are looking for price guidance from Janet &
Co," said Ben Le Brun, market analyst at Sydney's OptionsXpress,
referring to Fed Chair Janet Yellen and the bank.
"There is scope for the dollar bulls to be disappointed this
week (which) might be a driver for oil prices and the
commodities complex overall," Le Brun said.
A weaker dollar makes dollar-denominated commodities,
including oil, cheaper for consumers using other currencies.
Brent crude for September LCOc1 was down 2 cents at $54.60
a barrel as of 0655 GMT after dropping 65 cents in the previous
session to $54.62, its lowest close since March 19.
U.S. crude for September CLc1 was down 12 cents at $48.02,
after falling 31 cents in the previous session to $48.14, its
lowest settlement since March 31. It hit an intra-day low of
$47.72 on Friday, the lowest intraday price since April 1.
Sparking new worries about a global glut, U.S. oil producers
added 21 drilling rigs last week, the biggest rise since April
2014, according to Baker Hughes (NYSE:BHI) BHI.N . ID:nL1N1041JT
The increase in drilling activity came despite a 21 percent
collapse in U.S. crude prices from about $61 a barrel in
mid-June. A 20 percent downturn is considered by many traders to
constitute a bear market.
In Iraq, exports from its southern oilfields are on course
for a monthly record, having topped 3 million barrels per day so
far this month, according to loading data and an industry
source. ID:nL5N10420C
The expectation of continued abundant oil supplies,
including an output increase from Saudi Arabia and other members
of the Organization of the Petroleum Exporting Countries, led
the National Australia Bank on Monday to revise its oil price
forecasts in a monthly report.
"We now expect oil prices to stay below $70 a barrel for the
rest of 2015 and 2016," the bank said.
Speculators cut long bets on U.S. crude futures and options
to the lowest level in five years last week, the U.S. Commodity
Futures Trading Commission said on Friday. ID:nL1N10420O
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
* For a 24-hr chart on Brent:
http://graphics.thomsonreuters.com/US/2/PVB_20152707090300.png
* For a 24-hr chart on U.S. oil:
http://graphics.thomsonreuters.com/US/2/PVB_20152707085256.png
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>