Negative outlook for oil prices for the week ahead

Oil futures ended Friday’s session at the lowest level in nearly three months, as concerns over a global supply glut intensified after data showed that the U.S. oil rig count rose for the fourth week in a row last week.

Oilfield services provider Baker Hughes said late Friday that the number of rigs drilling for oil in the U.S. last week increased by 14 to 371, the fourth straight weekly rise and the seventh increase in eight weeks.

The renewed gain in U.S. drilling activity fueled speculation that domestic production could be on the verge of rebounding in the weeks ahead, underlining worries over a supply glut.

According to market experts, elevated stocks of fuel products amid slowing global demand growth is expected to keep prices under pressure in the near-term.

In the week ahead, oil traders will be focusing on U.S. stockpile data on Tuesday and Wednesday for fresh supply-and-demand signals.

Traders will watch closely next week:

Tuesday, July 26

The American Petroleum Institute, an industry group, is to publish its weekly report on U.S. oil supplies.

Wednesday, July 27

The U.S. Energy Information Administration is to release its weekly report on oil and gasoline stockpiles.

Friday, July 29

Baker Hughes will release weekly data on the U.S. oil rig count.

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