Oil falls on oversupply, demand concerns; U.S. crude hits three-month low
By Devika Krishna Kumar
NEW YORK (Reuters) - Oil prices fell more than 2 percent on Monday, with U.S. crude hitting a three-month low, on rising concerns that a global glut of crude and refined products would pressure markets, delaying a long-anticipated rebalance in the market.
Data from market intelligence firm Genscape pointing to an inventory rise of 1.1 million barrels at the Cushing, Oklahoma delivery point for U.S. crude futures in the week to July 22 weighed on crude prices, said traders who saw the numbers.
A massive overhang in refined products, particularly gasoline, despite forecasts for record U.S. summer driving has made investors less optimistic about a quick market rebalancing.
"We've got gasoline stocks that are through the roof ... And you have the specter of turnaround season not too far in the horizon," Robert Yawger, senior vice president of energy futures at Mizuho Securities USA said.
He also cut his price target on U.S. crude to $40 from $45 a barrel.
The threat of resurgent U.S. oil production with the rise of drilling rigs and a strong dollar added to the gloomy sentiment in the market, traders and brokers said.
U.S. crude settled down $1.06 at $43.13 a barrel, after touching a three-month low of $42.97 during the session. U.S. gasoline futures tumbled to a low of $1.3291 a gallon during the session, the lowest since March 4.
Brent crude futures ended the session down 97 cents at $44.72 a barrel, after hitting their lowest since May 10 at $44.55. Continued...