Oil trades near US$40 as global economic concerns mount amid glut
Futures added 0.5 per cent after falling 1.4 per cent yesterday.
Brent crude entered a bear market yesterday, joining the US benchmark, as investors turned risk averse, sending US stocks to their biggest drop in four weeks.
The industry-funded American Petroleum Institute was said to report US crude supplies fell 1.34 million barrels last week.
Oil has tumbled more than 20 per cent from its peak in June, meeting the common definition of a bear market and halting a recovery that saw prices almost double from a 12-year low in February.
The supply glut is upsetting industry expectations, with BP Plc, Royal Dutch Shell Plc and Exxon Mobil Corp. reporting second-quarter earnings last week that were worse than estimated.
West Texas Intermediate for September delivery was at US$39.69 a barrel on the New York Mercantile Exchange, up 18 cents at 7:43am Tokyo time.
Futures yesterday lost 55 cents to settle at US$39.51, the lowest since April 7. Total volume traded was about 35 per cent below the 100-day average.
Brent for October settlement closed 34 cents lower at US$41.80 a barrel on the London-based ICE Futures Europe exchange yesterday.
The global benchmark settled at a premium of US$1.50 to WTI for October. — Bloomberg
from Malay Mail Online | All http://ift.tt/2aH1ewv
Today updated news promoted by Mukah Pages
Post a Comment