Oil prices remain weak due to fuel oversupply

2 August 2016 (Last Updated August 2nd, 2016 18:30)

Oil prices have remained weak as fuel oversupply and faltering economic growth weighed on markets.

Oil prices have remained weak as fuel oversupply and faltering economic growth weighed on markets.

International Brent crude futures LCOc1 traded at $41.77 per barrel, while the US West Texas Intermediate (WTI) crude futures CLc1 sold at $39.54 per barrel, Reuters reported.

Analysts said that oil prices gained some support due to a weaker US dollar, which has dropped 2.5% in value against several other currencies since July highs.

"A weaker dollar makes fuel imports cheaper for countries using other currencies."

A weaker dollar makes fuel imports cheaper for countries using other currencies.

Further they added saying that due to an increase in supplies from Libya, high crude and refined product inventories, oil prices are set to be under downward pressure soon.

Morgan Stanley told the news agency: "In the last 72 hours, there have been reports of successful negotiations to re-open blockaded oil terminals in Eastern Libya and US airstrikes against Daesh (ISIS) in Sirte.”

Following these reports, production is expected to increase from 300,000 barrels per day (bpd) to 600,000bpd.

The bank also expects growth worldwide to move below consensus estimates.

Abu Dhabi National Oil (ADNOC) said that it had reduced the July retroactive selling price for its Murban crude MUR-OSP to $44.60 per barrel.

In May this year too, the set the company set the April retroactive official selling price for its Murban crude at $42 per barrel.