Energy prices stayed near multi-month lows early Monday as worries over a glut of supply in the commodity lingered.
In early Asian trade, the U.S. benchmark West Texas Intermediate (WTI) ticked down 0.3 percent to $43.57 a barrel, its lowest level since March 19. Brent crude edged down by the same margin to trade at a near six-month trough of $48.32 a barrel.
Selling pressure in the commodity heightened after government data last Wednesday showed U.S. gasoline stocks exceeding market estimates by about 300,000 barrels.
Also weighing on prices was the latest rig count from oilfield services firm Baker Hughes, which showed U.S. energy firms added six oil rigs last week, continuing a recent trend of increases and bringing the total rig count up to 670, the highest since early May.
Meanwhile, disappointing trade figures from China – the world’s top energy consumer – over the weekend could also dampen sentiment for crude oil prices. According to the data, Chinese exports tumbled 8.3 percent in July, marking the biggest fall in four months, as weaker global demand for Chinese goods and a strong yuan policy hurt manufacturers.
About Craig Erlam
Based in London, England, Craig Erlam joined OANDAin 2015 as a Market Analyst. With more than five years’ experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic research. He has been published by The Financial Times, Reuters, the BBC and The Telegraph, and he also appears regularly as a guest commentator on Bloomberg TV, CNBC, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.