Oil prices drop

New York, Aug 7 (IANS) Oil prices fell as traders worried that global supply might exceed the demand.

The global oversupply is currently running at two million barrels a day, compared to 1.8 million during the first six months of the year, Xinhua quoted a Goldman Sachs report on Thursday.

US crude production added 52,000 barrels to 9.465 million barrels a day that week, according to Energy Information Administration (EIA)’s weekly report.

Traders also anticipated more Iran crude would come to the already well-supplied oil market as the sanctions would be lifted.

The west Texas intermediate for September delivery moved down 49 cents to settle at $44.66 a barrel on the New York mercantile exchange, while Brent crude for September delivery decreased seven cents to close at $49.52 a barrel on the London ICE future exchange.

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