Oil futures were down on Tuesday reaching its lowest in three months as investors worry that oil-drilling activities will continue in the US. West Texas Intermediate crude was at $43 per barrel. Lower prices are likely to happen this week as the market is already expecting higher inventories. The latest US petroleum supplies report from the Energy Information Administration will be out this Wednesday while another report from the Trade group American Petroleum Institute will be released next Tuesday.
For the second quarter of 2016, there has already been a price increase of 37 percent which can be attributed to several supply disruptions particularly from the pipeline attacks of Nigerian militants and the Fort McMurray fire in Canada. The precious commodity has continued to be bearish for an extended period but the persistent uncertainties over the glut and the possibility of the US renewing it crude production plus worries of a decreasing demand are scaring investors following the report that US oil rig counts are increasing.
One of the main factors that caused the drop in crude prices since early June is the reduced disruptions in global supply. Experts from the UBS, Société Générale and BNP Paribas have been unanimous in anticipation that oil prices are going back to around $40 a barrel.
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