Oil prices decline on oversupply worries

New York, July 27 (IANS) Oil prices dropped on Tuesday, with US crude hitting three-month lows, as rising US crude rigs and fuel inventories spurred market concerns that another glut is building up.

The West Texas Intermediate for September delivery lost $0.21 to settle at $42.92 a barrel on the New York Mercantile Exchange, while Brent crude for September delivery added $0.15 to close at $44.87 a barrel on the London ICE Futures Exchange, Xinhua news agency reported.

Oilfield services company Baker Hughes said Friday that the number of rigs operating in the US fields rose by 14 to 371 in the week ending July 22, the fourth weekly increase in a row.

The Energy Information Administration (EIA) said in its weekly report on Wednesday that US gasoline inventories posted a surprise build of 911,000 barrels last week, marking the highest level since April.

Analysts said recent data have intensified fears on oversupply in the market, which weighed on oil prices.

Brent crude pared losses in late trading after earlier dipping to $44 US dollars a barrel on Tuesday.