Commodities

Oil prices fall to a 7 month low as natural gas rallies

Oil output

Oil settled with a modest drop on Thursday, following sharp declines in the previous session, as shows the global market remains awash in surplus oil. The continuous rising U.S. oil rigs crude production plus the weak domestic gasoline demand pushed oil prices into deeper loss.

Natural-gas futures, on the other hand rallied and ended the session in their highest finish of the month to date. Traders are kept interested in investing in natural gas because of the encouragement of a rise in weekly U.S. supplies of the fuel that came in below the market expectations.

West Texas Intermediate Crude futures for July fell by 27 cents an equivalent of 0.6% slip in the market, then later settled at $44.46 per barrel on the New York Mercantile Exchange after losing 3.7% the previous session.

Brent Crude Oil futures for August in the London’s ICE Futures exchange has fallen in the market by 0.2% losing 8 cents and futures were being sold at $46.92 per barrel.

Oil prices are in the bear by 4% to their lowest level since November, after the U.S. Energy Information Administration data showed the decrease in the crude stockpile last week and was disappointed because it failed to meet expectations.

In the other market. Nymex July gasoline and July heating oil futures each added less than half a cent, with gasoline ending at $1,436 per gallon and heating oil at $1,415 per gallon.

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