WTI keeps falling, challenges $ 47

By FXStreet FXStreet (Mumbai) – WTI oil on NYMEX extends its slide and is poised to attack 47 levels as escalating China slowdown fears especially after today’s weak Chinese manufacturing data reignited concerns over demand for oil from the world’s second largest consumer.

WTI accelerates losses

Currently, WTI trades over -3.70% lower at 47.37, extending losses towards $ 43. Oil prices keep its downside bias intact as generalized risk-aversion grips the financial markets weighing on the riskier assets such as oil and base metals.

The ongoing slump in the black gold could be seen as a corrective slide after both the oil benchmarks soared to highest levels in five months following a fresh report over falling US crude production as well as OPEC’s latest comments.

The Energy Information Administration (EIA) said on Monday that US crude oil output fell by 0.1 million barrels per day (bpd) to 9.3 million barrels in June, while output estimates for the January-May period had been revised down by about 0.13 million bpd.

Meanwhile, a fresh bulletin from OPEC’s Secretariat noted, “continuing pressure on prices, brought about by higher crude production, coupled with market speculation, remains a cause of concern for OPEC and its members – indeed for all stakeholders in …read more

Source:: FX Street