Brent crude futures fell below $30 a barrel in Asia trade on Thursday as concerns about Iran adding to a supply overhang spooked investors.
February Brent crude on London’s ICE Futures exchange were trading at $29.93 a barrel, down from the previous close at $30.31 a barrel. On the New York Mercantile Exchange, light, sweet crude futures for delivery in February traded at $ 30.55 a barrel at 0258 GMT, up 7 cents in the Globex electronic session.
He said a further price fall would depend on how soon western sanctions against Iran’s nuclear program are lifted and when the Middle East country is able to add to global supplies.
Bearish sentiment rose as weekly data from the U.S. Energy Information Administration showed the country’s crude-oil inventories were at 482.6 million barrels last week, near an eight-decade high reached in April. Market watchers said it could surpass 500 million barrels.
Crude stockpiles are likely to keep rising in the coming weeks, analysts said, as refiners buy less oil during a seasonal maintenance.
But the bigger problem is rising refined-product stocks, said an ANZ report, adding that gasoline stockpiles climbed 8.4 million barrels to 240 million barrels.
Consumption in the U.S. has been subdued in recent weeks, as warm weather has limited demand for heating oil and consumers are buying less gasoline than the previous year, EIA data show.
If demand for refined products softens, oil prices could stay lower for longer in the wake of a persistent global crude glut.
