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Crude Oil Drops on Oversupply, Natural Gas Erases Losses

July 20, 2015 at 17:16 by Vladimir Vyun

Futures for crude oil declined today due to persistent concern about oversupply on the market. The worries remained even after Baker Hughes reported that the number of US oil rigs declined by 7 last week after two weeks of gains. There are also prospects for increasing supply after sanctions have been lifted from Iran, though experts say that Iranian oil will not reach the market over the next several months. August contract for delivery of WTI crude oil fell 1.4 percent to $50.18 per barrel as of 17:08 GMT on NYMEX today. September contract for Brent crude dropped 0.89 percent to $56.59 per barrel on ICE.

Natural gas was under pressure during Monday’s trading due to weather forecasts but recovered as of now. Forecasts promise milder weather in the United States, meaning less demand for air conditioning. This, in turn, means lower usage of gas that is responsible for about a quarter of US energy generation. August natural gas was basically unchanged at $2.87 per million British thermal units on NYMEX after sinking 2.49 percent to $2.8 earlier.

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