Crude Oil Falls to Another 12-Year Low on Oversupply Gloom
Tokyo: Crude oil fell in Asian trade on Thursday, with Brent marking another 12-year low amid gloom over a world awash with supply and concerns about global economic growth hitting equity markets.
Brent dropped as far as $29.73, the lowest since February 2004 and down more than 1.5 per cent. It was down 47 cents at $29.84 a barrel at 0145 GMT and the contract has fallen every trading this year.
West Texas Intermediate (WTI) erased earlier gains and was down 12 cents at $30.36 a barrel. It settled at $30.48 on Wednesday, up 4 cents, the contract’s first gain in 2016.
It was the second time in two days for Brent, the global benchmark, to drop below $30 a barrel after WTI fell below that mark on Tuesday, before recouping some of the losses.
“Perhaps $30 or just slightly below is acting as a little bit of a floor, but that being said that’s a straw in a hay barn in terms of positivity,” said Ben le Brun, market analyst at OptionsXpress in Sydney.
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