West TX Oil near $98 on Plentiful Supply

U.S. crude futures edged lower on Monday, trading near six-month lows reached in the previous session, as brisk supplies kept sentiment weak and stretched oil’s losses from last month.

U.S. crude for September delivery dropped 17 cents to $97.71 a barrel by 0010 GMT. The contract fell as low as $97.09 on Friday, its weakest since early February, after losing nearly 7 percent in July.  Brent oil was down 14 cents at $104.70 a barrel.

The front of the Brent futures price curve is trading at a heavy discount to later delivery barrels in a formation known as a contango. This discount has now lasted longer than any since early 2011, reflecting “weak physical demand and an oversupplied Atlantic Basin”, Morgan Stanley analysts said.

CNBC

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