Oil costs stay near April short on ongoing oversupply

Pump jacks are seen at the Lukoil company owned Imilorskoye oil field, as the sun sets, outside the West Siberian city of Kogalym, Russia, January 25, 2016. Picture taken January 25, 2016.

Reuters/Sergei Karpukhin

Oil prices on Friday stayed around April lows as slowing economic growth threatened to aggravate continuous oversupply of crude and improved items. International Brent petroleum futures LCOc1 were trading at $42.78 at 0127 GMT (09:27 p.m. EDT), up 8 cents from their previous close. U.S. West Texas Intermediate (WTI) crude CLc1 was at $41.16, up 2 cents. Brent hit its lowest because April in the previous session, at $42.56, while WTI hit a fresh low of $40.95 per barrel early on Friday, and both crude standards are now down around 20 percent since their last peak in June.

Since of continuous oversupply, U.S. bank Goldman Sachs (GS.N) stated today that it did not expect a huge recovery in rates at any time quickly. “We continue to anticipate that oil costs will stay in a $45 per barrel to $50 per barrel trading range through mid-2017 with near-term threats skewed to the drawback,” the bank stated.

Regardless of this, some analysts said current rate falls in oil had actually been overdone, specifically as need remains strong in spite of issues over future economic development.

” Investors have actually ended up being extremely bearish on oil as U.S. production and fuel inventories continue to rise. We think those concerns are unwarranted. Hidden need in the United States stays robust,” ANZ bank said. (Reporting by Henning Gloystein; Modifying by Richard Pullin).

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