Oil prices resume decline on supply glut worries

SINGAPORE;Oil prices resumed their declines
in Asia Wednesday following a US report showing
stockpiles surged last week ,with analysts warning
for further weakness ahead,

Ahead of an official report the industry founded
American Petroleum Institute (API) said stockpiles
had increased by 2-3 million barrels last week.

US benchmark West Texas Intermediate  for
September delivery fell 70 cents to 50-16 a barrel
and Brent crude for September tumbled 53 cents
to $56.51 in late-morning Asian trade'


Crude prices remain under pressure as the supply
overhang continues to persist"said  Bernard Aw
marker strategist  at IG Markets Singapore.

Wednesday 's official Energy Information
Agency data will be closely monitored although
it is evident that the supply glut problem  is
expected to stay for a while  longer "Aw added.

Oil prices have tumbled from more than $100
a barrel in June last year as strong production
from  the United States and the Organization
of the Petroleum Exporting countries led to
supplies outpacing demand,

Concerns over the return of Iranian oil to the
market following a deal with major powers
 powers  on its nuclear ambitions have also
added to pressure on prices

The deal which aims to prevent Iran from
building a nuclear weapon -allow for the lifting
a crippling economic sanctions on the country
,enabling it to ramp up shipments of oil
AFP