Investing.com – Oil futures on Friday dropped back below $49 after meeting resistance at the $50 psychological mark as oversupply concerns re-emerged.
U. S. crude futures fell 53 cents, or 1.07%, to $48.95 a barrel at 0650ET, while Brent crude futures were down 1.45% at $48.87 a barrel.
Brent crude pushed above the $50 level on Thursday for the first time since November as U.S. crude stockpiles fell more than expected but fell back on concerns that higher prices could bring shale oil production back into play.
Caution was also the order of the day ahead of a speech by U.S. Federal Reserve Chair Janet Yellen. Any comments on Yellen’s part that reinforce expectations of a U.S. rate hike could push up the dollar, which would dampen demand for oil. The outcome of the OPEC meeting in Vienna on June 2 also came into play.
Investors will be looking to the latest weekly oil rig account figures from Baker Hughes due out later Friday.