Oil prices drop on excess global supply

Oil prices dropped today amid the expectations that the U.S. rig counts would likely resume rising. The Nigerian and Libyan exports encouraged excess global supply.

Brent crude oil futures to $46.32

The Brent crude futures traded 27 cents or 0.6% lower to $46.32. WTI Intermediate futures traded to $43.67, declining 0.6% or 24 cents.

According to ANZ, an Australian bank, the focus is currently on the U.S.'s drilling activity, and on the increased concerns regarding the nation's output and recovery.

Today's Baker Hughes U.S. rig count release is one of the key events. The WTI prices were supported to stabilize above $40 a barrel since the beginning of the previous month, August, having boosted the growth of U.S. rigs.

The total rig count reached to 414, amid the U.S. drillers introducing, in the week to September 9, seven oil rigs.

Moreover, Nigeria'sand Libya's returning supply will weigh on today's sentiment hampering the balance of the worldwide crude market.

Read More