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Oil prices in Asia drop further

SINGAPORE: Oil prices fell in Asia on Monday, giving up some of last week’s sharp gains as concerns of a global supply glut weighed on prices ahead of fresh US stocks data.

US benchmark West Texas Intermediate (WTI) for delivery in February was down 27 cents at $37.83 and Brent crude for February was trading 17 cents lower at $37.72 a barrel at around 0320 GMT.

Prices jumped last week after data showed an unexpected fall in US commercial crude stockpiles, with WTI adding almost 10 percent.


Analysts predict the US Energy Information Administration will report another fall in US crude stockpiles on Wednesday, an indication of stronger demand in the world’s top oil consumer.

“Further evidence of continued draw-down in the US crude oil inventory could strengthen WTI in the near term and widen its spread over Brent,” Gupta said.

Oil prices have been under pressure since 2014 due to concerns about a persistent glut in world supplies and weak demand.