Ample global supply (click here) and increasing U.S. commercial inventories weighed on U.S. crude prices on Thursday after expectations for better demand going forward lifted prices a day earlier, traders and analysts said.
U.S. crude settled 5.5 percent lower, or $2.82, at $48.17 a barrel, following a more than 3 percent gain in the previous session.
Brent losses were tempered by expectations for improving global demand and geopolitical concerns about energy supplies from Libya and Russia.
Benchmark Brent crude fell $1.60 to $60 a barrel, after hitting a session peak of $62.63. On Wednesday, Brent surged 5 percent....
There was speculation with the first drop in oil prices that in order to keep their heads above water, struggling oil suppliers would sell more and more in order to remain in business. Well, here it is. When oil is suppose to be rebounding because the major suppliers, such as ExxonMobile, have cut back production, the glut persists coming from the USA.
Eventually, these marginal suppliers will be unable to stay viable, so this is all a money grab by management before they are able to sustain their operations.
