By Keith Wallis
SINGAPORE, July 27 (Reuters) - Oil prices slipped lower in early Asian trade on Monday after closing the previous session at their lowest level since March on renewed oversupply concerns after data showed U.S. drilling activity increased last week.
U.S. oil producers added 21 oil rigs last week, the biggest rise since April 2014, oil services company Baker Hughes Inc BHI.N said in on Friday. ID:nL1N1041JT
That was despite a 21 percent collapse in U.S. crude prices since mid-June when prices hit $61 a barrel on June 23 leading U.S. oil prices to enter a bear market. A 20 percent downturn is considered by many traders to constitute a bear market.
U.S. crude for September delivery CLc1 was down 14 cents at $48 as of 0024 GMT, after closing the previous session down 31 cents at $48.14, its lowest settlement since March 31 and down 5.5 percent on the week.
Brent crude futures for September delivery LCOc1 fell 4 cent to $54.58 after ending the previous session 65 cents down, the lowest close since March 19 and a drop of 4.3 percent for the week.
Hedge funds and other money managers slashed long bets on U.S. crude futures and options to the lowest level in five years last week, as crude continued to tumble, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday. ID:nL1N10420O
Crude oil exports from Iraq's south are on course for a new monthly record this month having risen above 3 million barrels per day (bpd) so far this month, loading data and an industry source said on Friday. ID:nL5N10420C
Market dynamics are changing in OPEC countries, with an increasing focus on earning diversification to protect state revenues in a low crude oil price environment," ANZ said in a report on Monday.
"Saudi Basic Industries Corp is looking at investing in U.S. shale and some other options in China using coal to convert to chemical products. The potential also exists for the Middle East to become a larger refined product export hub," the ANZ note added.
Iranian refining and petrochemical firms could be partially sold off as part of a package of measures to attract foreign investors once western sanctions officially end, Minister of Industry, Mines and Trade Mohammad Reza Nematzadeh said at a conference last week. ID:nL5N10434D
The state-owned Nigerian National Petroleum Corporation (NNPC) will be soon be split into two entities - an independent regulator and investment vehicle, a spokesman for Nigerian President Muhammadu Buhari said on Saturday. ID:nL5N1050IX