Crude oil demand from refineries is underperforming product demand by a wide margin

crude

profitaddaweb.com-Oil prices held near two-month lows on Monday amid worries that a global crude and refined product glut would weigh on markets for some time to come.

International Brent crude oil futures were trading at $45.59 per barrel down 10 cents from their previous close. US West Texas Intermediate (WTI) crude was at $44.09, also down 10 cents a barrel.

Both benchmarks were close to two-month lows reached last week.

Traders said that ongoing oversupply and growing economic headwinds were weighing on oil.

"Headwinds (are) growing for 2H16, hence our bearish oil bias," Morgan Stanley said on Monday in a note to clients, pointing to resilient US supply, falling demand for transport fuels, and oversupply by refiners, particularly in gasoline.

"As a result, crude oil demand from refineries is underperforming product demand by a wide margin," the US bank said, adding that growing economic risks added to downside risks for oil.