Oil markets were also pressured by a Goldman Sachs report saying prices needed to remain low for months to slow U.S. oil output growth.
Brent LCOc1 was down 50 cents at 57.62 dollars a barrel while U.S. crude CLc1 was down 60 cents at 51.54 dollars a barrel.[pro_ad_display_adzone id=”10″]
Global oil markets already face a supply glut with producers pumping over 1.5 million barrels per day (bpd) more than demand in the first half of this year, analysts say.
“There is a massive oversupply, stocks are rising and now we have the prospect of more Iranian oil coming onto the market,” said Carsten Fritsch, analyst at Commerzbank in Frankfurt.
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Goldman said in a research note it expected U.S. crude inventories to top out in April and subsequently draw down at 350,000 bpd during May-September, when demand for fuel would be high. (Reuters/NAN)