Oil slips below $31

Oil prices continued their tumble on Tuesday. Fears of a slowdown in China in recent weeks have added fears of slowing consumption and massive oversupply.

While efforts to further weaken China’s currency could help shore up its export-focused economy, it would make imports of oil and other dollar-priced commodities more expensive and would be likely to further hit demand. This could lead to another round of commodity weakness and send oil even lower.

Meanwhile, a key producer – Iran – could be allowed to export the commodity within weeks as the West prepares to lift embargoes after a deal over its nuclear program. This causes concerns of an oil glut.

Brent crude, the benchmark, slipped by more than $2, ( 6 per cent), to $31.48 a barrel, a level last reached in April 2004. Meanwhile, West Texas Intermediate, the US oil benchmark, dropped $1.70 to $31.28 a barrel, a new 12-year low.

The declines in oil prices resulted in more than 10 per cent knocked off both benchmarks in the first trading week of 2016.

The post Oil slips below $31 appeared first on FXTM Blog.

Source:: Oil slips below $31

About the Author
ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC. Our mission is to maximize the value our clients derive from their most precious commodity, "Time"! By offering advanced and innovative services, optimal customer care and perpetual devotion to our clients, we will ensure that their individual needs are always met as markets continue to evolve over time. Visit ForexTime to learn more www.forextime.com [space height="20"] [social type="facebook"]https://www.facebook.com/ForexTime[/social] [social type="twitter"]https://twitter.com/ItsForexTime[/social] [social type="google-plus"]https://plus.google.com/u/0/+ForextimeFXTM/posts[/social] [social type="youtube"]https://www.youtube.com/user/ItsForexTime[/social]

Related Posts

Leave a Reply

*