Zee Media Bureau
US benchmark West Texas Intermediate for September delivery on Thursday fell 49 cents to USD 44.66 a barrel on the New York Mercantile Exchange, closing below USD 45 for the first time since March.
The WTI contract was now barely USD 1 above its lowest closing level in six years.
Oil prices fell again in a glum market as the global oversupply of crude oil looked entrenched and demand prospects weak.
Brent North Sea crude for September, the international benchmark, closed at USD 49.52 a barrel in London, down seven cents from the day before.
The crude glut is largely responsible for the roughly 50 percent decline in oil prices since mid-2014. The United States is producing crude at high levels and output by the Organization of the Petroleum Exporting Countries (OPEC) continues to exceed the cartel`s quota of 30 million barrels per day.
In addition, investors were looking ahead to additional supplies of oil coming into the market as part of last month`s historic deal between six major powers and Iran over its nuclear program.
In exchange for curbing its nuclear program, Tehran would see the lifting of sanctions, which have slashed its oil exports.
Traders also awaited the important US jobs report for July due on Friday. It was expected to be a key mover of the dollar, and as a consequence, have potential impact on dollar-priced crude oil.
Mixed economic signals have left the outlook for the US payrolls report uncertain. On average, analysts expect the unemployment rate will remain unchanged at 5.3 percent, a seven-year low, and job growth to continue at a moderate pace.
With Agency Inputs
