NEW YORK: Oil turned lower in volatile trading and US crude dropped below $49 per barrel for the first time since April, after the dollar trimmed early losses and on concerns about shaky demand and ample global supply.

“The dollar recovered from its lows and there is just a negative mood in commodities and for oil there is the worry that the global economy is going to affect demand,” said Phil Flynn, analyst at Price Futures Group in Chicago.

The dollar weakened and supported oil early as the euro strengthened after Greece approved a second set of reforms needed to avert bankruptcy, but the US currency trimmed losses after a report showing tumbling jobless claims in the US.

A weaker US dollar makes greenback-denominated oil less expensive for consumers using other currencies.

The number of Americans filing new applications for unemployment benefits last week fell to its lowest level since 1973, suggesting the labor market continues a solid pace for job growth.

US September crude was down 86 cents at $48.33 a barrel at 1708 GMT, having reached $49.63 before sliding to $48.28, lowest front-month price since April.

US crude settled below $50 on Wednesday for the first time since April.

Brent September crudewas down 80 cents at $55.33, having traded from $55.32 to $56.53. It fell to $55.10 on July 7.

Both US and Brent crude are on pace to post double-digit percentage monthly losses.

Brent’s premium to US crude seesawed but increased to $7.19 a barrel intraday.

Ample supply continues to weigh on oil futures.

US crude oil stocks rose 2.5 million barrels last week, according to Wednesday’s report from the Energy Information Administration (EIA), trumping expectations for a drop of 2.3 million barrels and keeping stocks above the five-year average.

The supply glut looks set to grow as Iran’s nuclear deal with the West is expected to release millions of barrels of additional supply into the market.

Global surpluses and concern about weakness in China’s economy sent copper and aluminum to two-week lows on Thursday.

The Thomson Reuters CoreCommodity CRB Index, which tracks 19 commodities, was down 1.01 percent.

“We will be keeping a watch on the copper market (for) anecdotal evidence of a slowing in Chinaís economic growth,” Jim Ritterbusch, president at Ritterbusch & Associates, said in a note.

Ritterbusch pointed to the recent correlation between slumping copper and US crude futures.