NEW YORK (Reuters) - Oil fell as much as 5 percent on Tuesday after
the International Monetary Fund cut its 2015 global economic forecast on
lower fuel demand and key producer Iran hinted prices could drop to $25
a barrel without supportive OPEC action.
An expected slide in the U.S. oil rig count in the first quarter compared with the fourth quarter of last year failed to boost sentiment as traders and investors remain glued on concerns of oil oversupply.
Oil prices are hovering near six-year lows after a seven-month long selloff on worries of a glut caused primarily by unexpectedly high production of U.S. shale crude.
Benchmark Brent crude was down 48 cents at $48.36 a barrel by 1533 GMT, after touching a session low at $47.78.
U.S. crude traded down $2.12 at $46.57, after an intraday bottom at $46.23.
"Because we have record oil production now, the falling rig numbers are not creating an immediate positive impact in bolstering prices," said Phil Flynn, analyst at Price Futures Group in Chicago. "In fact, they may be creating just the opposite impact; reminding us how poor demand is."
U.S. oil services firm Baker Hughes Inc said in its conference call presentation on Tuesday the U.S. average rig count was expected to decline 15 percent in the first quarter from a quarter ago, and it expected to lay off some 7,000 staff.
Read more Click here / www.trade4x.net
An expected slide in the U.S. oil rig count in the first quarter compared with the fourth quarter of last year failed to boost sentiment as traders and investors remain glued on concerns of oil oversupply.
Oil prices are hovering near six-year lows after a seven-month long selloff on worries of a glut caused primarily by unexpectedly high production of U.S. shale crude.
Benchmark Brent crude was down 48 cents at $48.36 a barrel by 1533 GMT, after touching a session low at $47.78.
U.S. crude traded down $2.12 at $46.57, after an intraday bottom at $46.23.
"Because we have record oil production now, the falling rig numbers are not creating an immediate positive impact in bolstering prices," said Phil Flynn, analyst at Price Futures Group in Chicago. "In fact, they may be creating just the opposite impact; reminding us how poor demand is."
U.S. oil services firm Baker Hughes Inc said in its conference call presentation on Tuesday the U.S. average rig count was expected to decline 15 percent in the first quarter from a quarter ago, and it expected to lay off some 7,000 staff.
Read more Click here / www.trade4x.net
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