Thai Oil: oil prices tumble on oversupply concerns

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BANGKOK, 3 July 2015,  Thai Oil Public Company Limited reported that fuel prices remained stable today, amid the global oversupply concerns after the U.S. increased its crude production.

the price of West Texas Intermediate crude decreased by 0.03 dollar to 56.93 U.S. dollars a barrel. However, the price of Brent crude oil increased by 0.06 dollar to 62.07 U.S. dollars a barrel. Oversupply concerns were triggered after U.S. oil drilling yesterday increased for the first time after 29 weeks of declines.

According to energy services firm Baker Hughes, the oil rig count rose by 12 to 640, following a six-month slump in activity that reduced the number of active rigs from a peak of 1,609 in October to nearly a five-year low last week.

Analysts expect the oil rig count to continue to rise over the latter half of this year, raising U.S. crude supplies and pulling down oil prices. Currently, U.S. fuel prices are being cushioned by the recent report on the employment figure, which is lower than expected. The unemployment rate reached its the lowest point since May 2008 at 5.3 percent.

Thai Oil suggested that investors keep their eyes on the Greek Referendum on Sunday to decide whether or not the country would accept the terms of the International Monetary Fund and remain a member of the European Union.