Oil prices fall due to oversupply


Oil prices have dropped due to the continued global oversupply, which prompted many banks to reduce price forecasts.  

Benchmark Brent crude LCOc1 fell 30 cents to touch at $46.58 a barrel, while US crude CLc1 dropped 25 cents to reach at $44.15, reported Reuters.

French bank BNP Paribas head of oil strategy Harry Tchilinguirian was quoted by the news agency as saying: "The fundamental mood has taken a turn for the worse." 

BNP Paribas cut its forecasts for Brent from $60 to $51 a barrel for 2017 and from $63 to $48 for 2018. 

"The fundamental mood has taken a turn for the worse."

Barclays bank also reduced its Brent forecasts for this year from $55 to $52 and from $57 to $52 next year. 

Due to strong short-term demand, the losses caused by a  dip in prices were restricted. 

Gasoline demand is increasing in the US due to summer. 

Crude prices are around 18% below from the levels in the beginning of this year despite Organization of the Petroleum Exporting Countries efforts to reduce production from January. 

OPEC and other oil producing regions have agreed to reduce production by about 1.8 million bpd below levels from the end of last year.