Oil prices are sliding

LONDON — The price of oil fell 1% in early trade on Friday morning, amid fears of oversupply.

UK Brent is down 1.02% to $US47.62 a barrel at 7.25 a.m. BST (2.25 a.m. ET):

US West Texas Intermediate oil is down 1.12% to $US45.01 at the same time:

David Madden, a market analyst at CMC Markets, says in an email on Friday morning: “Oil initially surged after the energy information agency (EIA) reported a 6.3 million-barrel draw in oil inventories, and traders were anticipating a draw of 2.3 million barrels. The gains were given up after a few hours and oil dropped to a new low of the day yesterday.

“The American Petroleum Institute (API) announced a much bigger than expected drop in inventories on Wednesday — so the EIA report wasn’t a total shock. Even though US stockpiles of oil are at its lowest level since January, the concerns about global over-supply are still doing the rounds.”

Get the latest Oil WTI price here.

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