Oil prices advance, gains capped by oversupply

FXStreet (Mumbai) - Crude oil prices bounced on Thursday as gains in the Shanghai Composite index triggered a recovery in the commodities and weighed over the USD.

Front month Crude futures currently trade almost 1% higher at USD 52.14/barrel. Brent futures are up 0.59% at USD 57.38/barrel.

Still, analysts say the oil prices are likely to remain under pressure due to worries of over supply. Consequently, the big gains are being ruled out by the experts. There are also concerns that Iranian exports could also resume at full throttle if global powers reach deal with Iran.

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