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U.S. oil prices fall to over two-month lows on rising inventories

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Reuters SINGAPORE
Last Updated : Nov 13 2015 | 11:42 AM IST

By Henning Gloystein

SINGAPORE (Reuters) - U.S. crude oil dipped further in early trading on Friday to over two-month lows as prices fall over 10 percent since the beginning of November.

Benchmark U.S. crude futures were at $41.70 a barrel at 0021 GMT, down five cents from Thursday when prices tumbled 4 percent on the back of high rising U.S. stocks.

"Crude prices dropped to the lowest level in more than two months after U.S. oil stockpiles climbed for a seventh week," ANZ bank said on Friday referring to official U.S. data that saw crude inventories rise by 4.2 million barrels last week against a market expectation of just a 1.3 million barrel gain.

ANZ also said that big price rises this year were unlikely: "A year end recovery in commodity prices remains unlikely with a stronger US$ and EM (emerging market) growth concerns."

Oil markets have been dogged by oversupply, which analysts estimate to be between 0.7 and 2.5 million barrels of oil being produced everyday without a buyer, and which has resulted in prices falling by almost two-thirds since June 2014.

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(Editing by Michael Perry)

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First Published: Nov 13 2015 | 6:10 AM IST

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