20 Jan 2016
Oil back in the red, WTI hits new 12-year low
FXStreet (Mumbai) - Oil benchmarks on both sides of Atlantic failed to sustain the previous rebound and resumed the slump as renewed fears over global supply glut dampened investors’ sentiment once again.
WTI recovers from fresh 12-year lows of $ 28.21
Currently, WTI trades 1.37% lower at 29.16, while the Brent oil drops nearly 1% to 28.55. Oil prices came under renewed selling pressure in the Asian trades this Wednesday, as markets continue to weigh IEA report released on Tuesday that noted the glut is expected to last until 2016 end and that oil markets could "drown in oversupply".
Adding to the downward pressure on oil, Tuesday’s Chinese growth numbers also disappointed markets, while worries over return of Iranian oil exports to international markets continues to spook markets.
Looking ahead, attention now shifts towards the inventory reports from the US due this week. The API publishes its estimate of US crude oil reserves on Wednesday, followed by the Energy Information Administration (EIA) inventory report on Thursday. The EIA expects stockpiles will continue to grow to unprecedented highs of above 500,000 barrels this quarter before beginning to fall off.
WTI recovers from fresh 12-year lows of $ 28.21
Currently, WTI trades 1.37% lower at 29.16, while the Brent oil drops nearly 1% to 28.55. Oil prices came under renewed selling pressure in the Asian trades this Wednesday, as markets continue to weigh IEA report released on Tuesday that noted the glut is expected to last until 2016 end and that oil markets could "drown in oversupply".
Adding to the downward pressure on oil, Tuesday’s Chinese growth numbers also disappointed markets, while worries over return of Iranian oil exports to international markets continues to spook markets.
Looking ahead, attention now shifts towards the inventory reports from the US due this week. The API publishes its estimate of US crude oil reserves on Wednesday, followed by the Energy Information Administration (EIA) inventory report on Thursday. The EIA expects stockpiles will continue to grow to unprecedented highs of above 500,000 barrels this quarter before beginning to fall off.