Oil falls to seven-month low on more signs of growing crude glut

By Scott DiSavino | NEW YORK Oil prices fell about 1 percent on Monday to a seven-month low as market players saw more signs that rising crude production in the United States, Libya and Nigeria undercut OPEC-led efforts to support the market with output curbs. “We’re seeing more tankers used for storage and more crude from West Africa and Europe being offered into the U.S. Gulf Coast at the same time the Gulf Coast has been an exporter of light sweet crude,” said Andrew Lipow, president of Lipow Oil Associates in Houston. “These are all signs of an oversupplied market.” Brent LCOc1 futures for August fell 46 cents, or 1 percent, to settle at $46.91 a barrel, their lowest since Nov. 29, the day before the Organization of the Petroleum Exporting Countries agreed to cut output for the first six months of 2017. U.S. West Texas Intermediate crude CLc1 futures for July dropped 54 cents, or 1.2 percent, to settle at $44.20 per barrel, the lowest close since Nov. 14. The July contract will expire on Tuesday, and August will become the front month. Both benchmarks are down more than 15 percent since late May, when producers led by OPEC

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Source: CTRM Center

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