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By Nigar Abbasova

World oil prices demonstrated a negative dynamics and hit its lowest index since May on July 26, following a decline by more than 2 percent on July 25, CNBC reported. The decrease is triggered by concerns over excess of supply in the market.

Global benchmark Brent crude oil futures were trading at $44.49 per barrel at 09:00 GMT, facing a decrease of 23 cents. West Texas Intermediate (WTI) crude was down by 36 cents and stood at $42.77, which is considered to be the lowest index since April.

Record crude output from the OPEC, a glut of refined products and signs of more drilling activity in the United States in the face of low oil prices have also raised concerns about excess supply.

“Supply continues, refined products are severely oversupplied, crude demand is falling short of product demand and key product demand is decelerating,” analysts at Morgan Stanley said in a note, on July 24.

Analysts forecast that the crude oil demand to deteriorate further over the coming months given the oversupply in the refined product markets.

The price of OPEC basket of fourteen crudes stood at $41.35 a barrel on July 25 as compared with the rate of $41.71 per barrel shown previously

Being introduced on June 16, 2005 the OPEC Reference Basket (ORB) is made up of the following oil brands: Saharan Blend (Algeria), Girassol (Angola), Oriente (Ecuador), Rabi Light (Gabon), Minas (Indonesia), Iran Heavy (Islamic Republic of Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Qatar Marine (Qatar), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela).

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Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova

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