Oil prices have dropped for the second consecutive day over rising concerns that the global crude glut may not be eliminated as quickly as expected.
Brent crude LCOc1 fell 26 cents to $55.86 a barrel after slipping 67 cents in the previous session, while the US crude CLc1 dropped 15 cents to $50.43, reported Reuters.
Last week, Brent traded as high as $59.49, which has now dropped by nearly 6%.
Ayers Alliance chief investment officer Jonathan Barratt was quoted by the news agency as saying: “The fourth quarter is not too kind to the price of oil, as we switch from summer demand to expectations of winter demand.
“A lot of (refinery) maintenance occurs at this time so feeder demand is not there.”
Earlier, the Organization of the Petroleum Exporting Countries (OPEC) member Iraq said that its exports in the last month increased from its southern oilfields.
A survey conducted by Reuters also found that overall output from the oil cartel improved.
Last week, oil prices increased due to the indications that the three-year crude glut is gradually easing, which restricted prices.
However, the rise in prices may again encourage shale drillers in the US to increase output thereby offsetting OPEC’s oil curb deal impact.
The latest figures released by energy services firm Baker Hughes stated that US drillers added six oil rigs in the week ending 29 September, bringing the total to 750.