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28 Jul 2015
Oil drops to near six-month low
FXStreet (Mumbai) - Oil sell-off continued on Tuesday, with prices dropping to near six month low as renewed weakness in the Chinese equities has triggered concerns regarding the health of the world’s second largest economy.
Brent fell to an intraday low of USD 53.28/barrel, its lowest since early February, before recovering to USD 52.63/barrel. WTI Crude also printed a low of USD 46.70/barrel, before recovering slightly to trade around USD 47.25/barrel.
China’s Shanghai Composite Index fell today, taking the cumulative losses for the first two sessions of the week to 10%. This triggered concerns that the Chinese economy may not be strong enough to counter the excess supply situation in the global economy.
Investors now await the weekly data on US inventory levels to gauge the strength of demand. A preliminary Reuters poll of analysts suggested commercial crude oil stocks in the US likely slipped last week after crossing the five-year seasonal average build in the previous week.
Brent fell to an intraday low of USD 53.28/barrel, its lowest since early February, before recovering to USD 52.63/barrel. WTI Crude also printed a low of USD 46.70/barrel, before recovering slightly to trade around USD 47.25/barrel.
China’s Shanghai Composite Index fell today, taking the cumulative losses for the first two sessions of the week to 10%. This triggered concerns that the Chinese economy may not be strong enough to counter the excess supply situation in the global economy.
Investors now await the weekly data on US inventory levels to gauge the strength of demand. A preliminary Reuters poll of analysts suggested commercial crude oil stocks in the US likely slipped last week after crossing the five-year seasonal average build in the previous week.