Oil prices slipped on Thursday as the market focused on oversupply and fading hopes of a production freeze.
Global crude oil benchmark Brent was down 15 cents at $48.90 a barrel by 1043 GMT, having closed down 1.8 per cent on Wednesday. U.S. light crude oil was down 5 cents at $46.72 a barrel, after dropping 2.8 per cent on Wednesday.
Oil prices rose more than 20 per cent in the first three weeks of August on talk of a potential deal by oil exporters to freeze production levels to try to support prices.
U.S. investment bank Jefferies agreed, telling clients on Thursday that even if a freeze was agreed, “the effects on the physical market would appear to be minimal.”
“We do not expect a production freeze – let alone a production cut – from the OPEC meeting,” it said in a report.
With output near record levels from many of the top producers, and demand shaky, there seems little prospect of an end to the glut which has pulled down crude prices from over $100 a barrel in 2014 to their current sub-$50 levels.Click here for reuse options!