Oil Prices Down on News of Japan's Contraction & Oversupply

Washington, DC, August 17, 2015—Oil prices fell towards six-year lows on Monday on data showing the economy of Japan, the world's third-biggest oil consumer, contracted in the second quarter, according to Reuters.

The global oversupply picture was exacerbated by another weekly jump in U.S. oil rig additions on Friday, hinting at growing production, and news that Oman produced a record-breaking one million barrels per day in July.

U.S. crude CLc1, or West Texas Intermediate (WTI), for September was trading $0.45 lower at $42.05 a barrel at 1348 GMT (0948 EDT), close to its lowest in more than six years.

Brent futures LCOc1 for October briefly reached an intraday high of $49.44 a barrel on news that Kuwait's 200,000-barrels-per-day Shuaiba refinery had shut following a fire. The contract traded just below Friday's close by 1355 GMT (0955 EDT) at $49.18 a barrel. The Brent September contract expired on Friday.

Over the past two weeks, U.S. crude prices have fallen by more than 10% on U.S. supply concerns. Brent has fallen by around 4%.