LONDON: Prices of oil have declined in North America as the markets were oversupplied. The Brent crude dropped below $60 a barrel and US contracts hovering at about $50.30.
After an initial rise on Monday along with global markets on optimism that another eurozone crisis over Greek debt had been averted for now, prices began dipping as analysts said crude markets remained oversupplied, especially in the US, where inventories are at record highs.
“We expect oil’s rally to peter out as weakening fundamentals overwhelm the recent rally,” said ANZ Bank in a note on Monday.
Brent crude was trading 28c lower at $59.94 at 9.29am GMT. Benchmark US West Texas Intermediate (WTI) crude April futures were trading down 3c at $50.31 a barrel.
WTI’s March futures settled at $50.34 a barrel on Friday, expiring as the front-month contract.
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