Oil prices under pressure; Brent dips below $50 for first time in a wee

Brent, the international oil benchmark, fell below $50 a barrel for the first time in a week as U.S. drilling data showed another uptick, reinforcing views that the recent rally may restrain the rebalancing in oil markets.

Oil prices have surged nearly 90% since dropping to 10-year lows in February, thanks to unplanned production outages world-wide and falling output in the U.S.

However, some market participants say the rally could encourage producers to ramp up production, keeping well-supplied markets awash in surplus.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in July CLN6, -1.04%   traded at $48.53 a barrel, down $0.54, or 01.1%, in the Globex electronic session. August Brent crude LCOQ6, -0.91%  on London’s ICE Futures exchange fell $0.49, or 1%, to $50.05 a barrel. The contract touched a low of $49.80 a barrel in Asia.

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