Oil Heads Lower as Supply Glut Continues

Oil prices fell for a sixth day on Wednesday, marking their longest string of losses in a year, as worsening global oversupply offset the potential lift from a weaker dollar and an expected drop in U.S. crude stocks.

A Reuters survey on Tuesday showed members of the Organization of the Petroleum Exporting Countries produced around 3 million barrels per day (bpd) of oil more than daily demand in the second quarter, compared with around 2 million bpd in the first three months of the year.

The Federal Reserve meets later in the day, but market expectations of a September rise in interest rates are fading, leaving the dollar down against a basket of currencies .DXY.

“If you look at (inventories) there’s been a pretty big build and also a build in gasoline (stockpiles) that is going to add a bit of pressure today,” said Olivier Jakob, an oil analyst at Petromatrix in Zug, Switzerland.

via Reuters

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