Saudi Arabia exported 7.365 million barrels per day (bpd) in June, up from 6.935 million bpd in May, figures published by the Joint Organisations Data Initiative (JODI) showed. The contract later stood at $46.95, down 21 cents.
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U.S. September crude was down $1.85 at $40.77 a barrel at 11:41 a.m. EDT (1541 GMT), having fallen to $40.60, the lowest front-month price since March 2009.
US crude oil plunged over 4% to end at a six-year low on Wednesday, after official weekly crude oil inventory data from the US Energy Information Administration showed stockpiles to have increased more than expected last week.
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The price of a barrel of oil dipped below the $41 level on Wednesday, dragging the Canadian dollar below 76 cents US in the process. U.S. crude stockpiles are nearly 100 million barrels above the five-year seasonal average, while leading members of the Organization of Petroleum Exporting Countries are maintaining production.
On the other hand, Citigroup saw WTI possibly falling to US$32 a barrel. Last night the Shenzhen fell 3.2%, to 3,761.45 points, while the Shanghai Composite Index lost 3.4%, to 3,664.29. Shares of Exxon Mobil, BP, Marathon Oil, Chevron and ConocoPhillips have all slid recently to multiyear lows.
U.S. oil prices in particular are under pressure after a surprise 2.6 million-barrel increase in U.S. commercial crude stocks last week on the back of higher imports on the Gulf Coast.
Analysts, however, do not expect oil prices to fall below $40 a barrel.
European benchmark Brent oil for October delivery fell $1.65 to $47.16 a barrel in London.
But EIA notes its projection “remains subject to significant uncertainties: the pace and volume at which Iranian oil reenters the market, the strength of oil consumption growth and the responsiveness of non-OPEC production to low oil prices”.
Long-term derivatives markets are bearish.
Friday’s fall, to $39.86, was just the latest indicator of a vast shift in the energy landscape over the past year.
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“Weighing on prices is the continued ample supply with crude oil builds in the U.S. and OPEC pumping at record levels”, said Michael Poulsen at Global Risk Management.
