Oil trades near three-month low as excess supply takes toll

[hubag bohol]

14 Mins Ago
Reuters


Brent crude oil futures traded near three-month lows on Friday as the pressure of a persistent supply glut quashed any optimism about a price recovery.

An early rally in Brent crude proved difficult to sustain, as focus returned to an overhang that has cut prices by more than 10 percent this month.

"The drivers that pushed prices lower are still there," said Hamza Khan, head of commodity strategy at ING, pointing to the strong dollar and increasingly efficient U.S. shale operations in addition to the overhang of physical oil. "Any rally today is going to have a difficult time finding traction."

The front-month Brent crude contract was 9 cents higher at $44.27 a barrel. The contract finished 4 cents higher on Thursday.