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“Under the current Saudi oil policy, it is still more likely…that any sustained price recovery will come through another OPEC country breaking down than from North American crude oil production collapsing”, Olivier Jakob, an oil analyst at Petromatrix, said in a...

Oil fell to a six-month low in London as Iran vowed to boost production immediately after sanctions are lifted and manufacturing in China slowed.

Crude slid into a bear market last month, joining a broader slide in raw materials amid expanding supplies and signs of slower growth in China. In fact, the prospect of new oil from Iran and increasing output from Iraq and Saudi Arabia has also helped push prices lower.

Oil prices plummeted Monday as market expected crude production from the Organization of Petroleum Exporting Countries (OPEC) hit record high in July.

On Monday, the rout deepened after data showed Chinese manufacturing growth unexpectedly stalled in July and U.S. consumer spending advanced at its slowest pace in four months in June as demand for automobiles softened.

Brent crude, the global benchmark, fell about 50 per cent last year and dropped 2.1 per cent on Friday to $52.21 a barrel on the London-based ICE Futures Europe exchange. Oil companies in the U.S. have made an unprecedented cutback in drilling after prices slumped to a six-year...

This underlines the persistence of the glut in supply, already lowering oil prices with the anticipated swift return of Iranian output to the market.

Oil prices remained weak in Asian trade Thursday after sharp losses in the previous session that drove Nymex oil futures below the $50 a barrel mark-the first time it has settled below that level since April 2.

Oil futures fell on Wednesday, with U.S. prices settling below a barrel for the first time since early April.

The August contract expires on Tuesday.

This would outpace the growth of oil supply from non-Opec sources and ultra-light oils such as condensate, increasing demand for Opec crude oil, it said.

Consumption in China and the developing world will recover while supplies of North American shale oil will grow more slowly, the cartel said in its monthly report.

Demand growth globally for oil should outpace any oil supply increase from sources that are non-OPEC and the ultra light oils like condensate, increasing the consumption of OPEC crude.

WTI and Brent crude oil ended higher in New York session and scored further gains in Asia today as market expected a delay in Iranian crude supplies after a nuclear accord was reached.

“The supply response to lower prices is on the way”, the IEA said, adding it may take another price drop for a full supply response to unfold.