7 Aug 2015
Brent oil trades below USD 50/barrel
FXStreet (Mumbai) - Brent oil prices faced rejection at the session high of USD 50.07/barrel and fell back into moderate losses to trade around USD 49.50/barrel.
Concerns of oversupply weigh
A client note from the investment bank Goldman Sachs on Thursday showed the global crude market is currently oversupplied by two million barrels a day, up from 1.8 million barrels a day in the first half of the year. The bank warned that prices could fall further.
Oil bulls lack strength due to the high levels of crude production in the US and other major suppliers, worries about weaker Chinese consumption and a strong dollar.
The prices are now down more than 25% from their 2015 high seen in June. The recent fall in oil prices has also dragged energy shares lower across the globe. The energy sector of the S&P 500 has fallen 15% on the year.
Concerns of oversupply weigh
A client note from the investment bank Goldman Sachs on Thursday showed the global crude market is currently oversupplied by two million barrels a day, up from 1.8 million barrels a day in the first half of the year. The bank warned that prices could fall further.
Oil bulls lack strength due to the high levels of crude production in the US and other major suppliers, worries about weaker Chinese consumption and a strong dollar.
The prices are now down more than 25% from their 2015 high seen in June. The recent fall in oil prices has also dragged energy shares lower across the globe. The energy sector of the S&P 500 has fallen 15% on the year.