Oil price drops again
NEW YORK, December 25, 2015 – Oil dropped to around USD 37 per barrel Thursday on the back of global oversupply concerns after making slight gains on decreased US crude inventories on Wednesday.
Brent lost USD 0.31 per barrel, settling at USD 37.05, after Tuesday’s 11-year dip of USD 35.98. West Texas Intermediate remained at USD 37.50 after gains of almost 8% earlier in the week.
Crude inventories fell by 5.88 million barrels in the US despite build expectations according to the US Energy Information Administration, which helped push up prices. Baker Hughes also reported on Wednesday that the US rig count was down for the fifth week in a row, signaling slowed output.
OPEC figures place the global supply glut, which limits gains in the oil price, to over 2 million barrels per day. The glut may be taken up next year as demand rises, although OPEC even though OPEC did not lower its production quota in December.