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MTECHTIPS:- Crude oil slumps in subdued trade as supply glut concerns linger

MTECHTIPS:- Crude oil slumps in subdued trade as supply glut concerns linger

Crude oil futures declined on Monday, as ongoing concerns over the health of the global economy underlined worries over a global supply glut. Trade volumes were expected to remain light on Monday, with U.S. markets closed for the Labor Day holiday. On the ICE Futures Exchange in London, Brent oil for October delivery slumped 89 cents, or 1.8%, to trade at $48.72 a barrel during U.S. morning hours. On Friday, Brent futures tumbled $1.07, or 2.11%. London-traded Brent futures lost 44 cents, or 0.88%, last week, amid fears of a China-led global economic slowdown. Oil prices have been under heavy selling pressure in recent months amid concerns over a growing glut in world markets. Global oil production is outpacing demand following a boom in U.S. shale oil production and after a decision by the OPEC last year not to cut production. Elsewhere, crude oil for delivery in October on the New York Mercantile Exchange shed 80 cents, or 1.74%, to trade at $45.25 a barrel. Nymex oil prices dropped 70 cents, or 1.5% on Friday. Despite Friday’s losses, New York-traded oil futures rose $1.05, or 1.84%, last week, amid indications U.S. oil drillers are cutting back on production following a collapse in prices over the summer. Industry research group Baker Hughes (NYSE:BHI) said late Friday that the number of rigs drilling for oil in the U.S. decreased by 13 last week to 662, the first weekly decline in seven weeks.
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