NEW YORK, July 27 — Oil held losses in a bear market as a rebound in US drilling added to signs producers will keep pumping amid a global glut.
Futures were little changed in New York after capping a 5.4 per cent decline last week.
The number of rigs seeking oil climbed by 21 to 659, the third weekly increase this month, according to Baker Hughes Inc.
The Bloomberg Commodity Index fell 4.4 per cent through July 24, the most since September 2011, extending a drop to a 13-year low.
Oil’s rebound from a six-year low in March has faltered amid signs a global surplus will persist as the US pumps near the fastest rate in three decades and leading members of OPEC produce record amounts of crude.
American stockpiles remain almost 100 million barrels above the five-year average.
West Texas Intermediate for September delivery was at US$48.03 (RM183) a barrel in electronic trading on the New York Mercantile Exchange, down 11 cents, at 9:25am Sydney time.
The contract fell 31 cents to US$48.14 on Friday, the lowest since March 31. The volume of all futures traded was 13 per cent below the 100- day average.
Prices have slumped more than 21 per cent since the peak reached in June, meeting the common definition of a bear market.
Brent for September settlement was unchanged at US$54.62 a barrel on the London-based ICE Futures Europe exchange.
Prices dropped 4.3 per cent last week.
The European benchmark crude was at a premium of US$6.58 to WTI. — Bloomberg
