US oil falls to lowest in over two months on swelling inventories

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Published: November 13, 2015 9:05:01 AM

US crude fell for the third session in a row on Friday to trade at the lowest in more than two months, as a relentless climb in oil stockpiles helped trigger a 10 percent drop in prices since the beginning of November.

Oil pricesUS crude fell for the third session in a row on Friday to trade at the lowest in more than two months, as a relentless climb in oil stockpiles helped trigger a 10 percent drop in prices since the beginning of November.

US crude fell for the third session in a row on Friday to trade at the lowest in more than two months, as a relentless climb in oil stockpiles helped trigger a 10 percent drop in prices since the beginning of November.

Benchmark US crude futures were at $41.47 a barrel at 0139 GMT, down 28 cents from Thursday, when prices tumbled 4 percent on the back of rising US stocks. The contract was trading at the lowest since Aug 27.

Internationally traded Brent crude futures were at $44 a barrel, down six cents.

“Crude prices dropped to the lowest level in more than two months after US oil stockpiles climbed for a seventh week,” ANZ bank said on Friday referring to official US data that saw crude inventories rise by 4.2 million barrels last week against a market expectation of a 1.3 million barrel gain.

ANZ also said that big price rebound this year was unlikely: “A year end recovery in commodity prices remains unlikely with a stronger US$ and EM (emerging market) growth concerns.”

Oil markets have been dogged by oversupply, which analysts estimate to be between 0.7 and 2.5 million barrels of oil being produced everyday without a buyer, and which has resulted in prices falling by almost two-thirds since June 2014.

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