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Oil futures rebound from recent losses but oversupply fears limit gains

Published 09/11/2015, 09:45
Updated 09/11/2015, 09:47
© Reuters.  Oil futures rebound but oversupply fears limit gains
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Investing.com - Oil prices inched up from two-week lows on Monday, as the U.S. dollar pulled back from recent highs, but gains were limited as oversupply concerns remained a factor for oil markets.

On the ICE Futures Exchange in London, Brent oil for January delivery rose 29 cents, or 0.6%, to trade at $48.46 a barrel during European morning hours. On Friday, Brent prices lost 56 cents, or 1.17%.

London-traded Brent futures dropped $2.08, or 4.32%, last week, the third weekly loss over the past four.

Elsewhere, crude oil for delivery in December on the New York Mercantile Exchange tacked on 24 cents, or 0.54%, to trade at $44.53 a barrel. Nymex oil prices tumbled 91 cents, or 2.01, on Friday.

New York-traded oil futures lost $2.14, or 4.94%, last week, after data showed that oil supplies in the U.S. rose for the sixth consecutive week, remaining near levels not seen for this time of year in at least the last 80 years.

The oil market has been volatile in recent months amid uncertainty about how quickly the global glut of crude is set to shrink.

Global oil production is outpacing demand following a boom in U.S. shale oil production and after a decision by the Organization of Petroleum Exporting Countries last year not to cut production.

Meanwhile, the spread between the Brent and the WTI crude contracts stood at $3.93 a barrel, compared to $3.13 by close of trade on Friday.

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