Oil falls amid supply glut worries, rebounding dollar, weaker global equities

Brent crude futures dipped by 79 cents to US$45, while US crude settled 2.5% lower at Us$43.65 a barrel. Amid renewed glut worries, a rebounding dollar and weaker global equities, US crude oil prices fell by over 2%, retreating swiftly from the year's highs peaked last week. Supplies have seen new highs as oil shipments from Iran's southern fields averaged 3.364 million bpd in April, up from 3.286 mln in March, while top exporter Saudi Arabia is likely to see production return to 10.5 million bpd soon from 10.15 million bpd in April. Iran is also raising output following an end to sanctions in January, having increased its exports to almost 2 million bpd from a little over 1 million bpd at the start of the year. Additionally, daily supply of North Sea Brent crude oil, which contributes to the futures benchmark, will rise in June to its highest in four months, up 17% from May, according to monthly loading programs provided by trading sources. The dollar index rose for the first time since April 22, making commodities denominated in the greenback, including crude oil, less attractive to holders of the euro and other currencies. Global stock markets fell, stoked by a 14th straight month of decline in Chinese factory activity in April. British manufacturing output dropped to a three-year low and euro zone growth was forecast to be slower than previously expected this year. U.S. crude inventories were expected to have risen 1.4 million barrels last week, adding to record highs, a Reuters poll of analysts concluded.
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