FXStreet (Mumbai) – Oil prices in the US recovered losses, but struggled to strengthen as the oil bulls are worried about the signs of growing glut in refined products that outweighed a fall in Saudi crude exports and slower US rig activity.

WTI Crude prices trade with moderate losses at USD 51.08/barrel. Prices have fallen for three weeks in a row on prospects of increased oil sales from Iran.

Prices remain under pressure as there are signs a glut in the crude oil market may be shifting to refined products. The strengthening USD after gold price drop seen in the Asian session also capped gains in crude prices.

Saudi Crude exports drop

Saudi Arabia’s crude exports fell in May to their lowest since December, with official data showing daily shipments at 6.935 million barrels per day (bpd) compared with 7.737 million bpd in April. Meanwhile, another set of data release din the US on Friday showed drillers cut seven oil rigs last week following two weeks of increases.

Oil prices in the US recovered losses, but struggled to strengthen as the oil bulls are worried about the signs of growing glut in refined products that outweighed a fall in Saudi crude exports and slower US rig activity.

(Market News Provided by FXstreet)

By FXOpen