Oil futures slipped from US$50 barrel mark

27-May-16

Oil futures slipped in Asian trade after meeting resistance at the US$50/barrel mark as investors worried higher prices could reactivate shuttered crude output, adding to global oversupply, as per Reuters. Prices were also pressured by a strong dollar that was buoyed by generally positive US economic data amid growing expectations of a near-term rate hike. Oil pushed through US$50 for the first time in around seven months on Thursday after supply disruptions from Canadian wildfires and attacks in Libya and West Africa helped cut daily output by 4 mln barrels Brent LCOc1 dipped to US$49.2, retreating further from the previous session's US$50.51 peak, its highest since early November. US crude CLc1 dropped to US$49.13 a barrel after touching US$50.21 on Thursday, it's highest since early October. Oil prices, which have risen nearly 90% from 12-year lows earlier this year, face pricing barriers to moving higher in the next three to five weeks. "In the next few months oil prices could stay in the high US$40-50 mark. We are entering the U.S. driving period so seasonal demand might provide underlying support to oil prices," said Yvanne Lai, senior analyst at National Australia Bank.