04 August 2015 – Oil prices edged up in early Asian trading on Tuesday following a 5 percent% fall in the previous session, as high global production and a weakening economic outlook, especially in Asia, prompted analysts to warn of further falls.
Oil output by Opec reached the highest monthly level in recent history in July, and production could rise further if Iran achieves a plan to raise output by 500,000 barrels per day as soon as sanctions are lifted.
With US production also near records, while China’s economy showed further signs of slowing, prices on Monday were pulled down to within a few dollars of the six-year lows touched at the start of the year, with Brent futures falling below $50 per barrel for the first time since January
Although prices edged up in early trading on Tuesday, with Brent 37 cents higher at $49.89 a barrel and US crude prices up 30 cents up at $45.47 a barrel, analysts said further price falls were expected.
“Crude oil is close to the low set earlier in the year, which is now looking likely to be tested as early as this week,” ANZ bank said in a note on Tuesday.