Concerns that a global glut of supplies will continue to grow prompted another drop in oil futures on Monday to their lowest settlement since early April. The move lower led one analyst to warn that the market may soon experience a “vicious selloff.”
Still, U.S. prices managed to hold above $50 a barrel in the wake of a weekly decline in the number of active U.S. rigs drilling for oil.
West Texas Intermediate August crude CLQ5, -0.04% fell 74 cents, or 1.5% to settle at $50.15 a barrel on the New York Mercantile Exchange. That was the lowest settlement for a most-active contract since April 2. The August contract expires Tuesday.