4 Aug 2015
Brent back above USD 50/barrel from six month low
FXStreet (Mumbai) - Brent oil prices recovered losses in the European session to trade above USD 50/barrel on the back of a weaker USD, and an uptick in Chinese stock markets.
Recovers from 6-month low
Prices dipped to a six month low of USD 49.36/barrel on Monday on concerns of excess supply and worsening economic outlook in China. Brent fell 18% in July, while WTI crude dropped 21%, which was its biggest monthly decline since the 2008 financial crisis.
Prices fell on Monday after Reuters survey showed OPEC output rose to a new high in July. The excess supply situation could worsen further if Iran is able to hit the market with higher output immediately after the sanctions are lifted.
Still, a minor recovery is being witnessed today, mainly on account of the weakness in the USD, triggered largely by the uptick in the AUD/USD pair.
Recovers from 6-month low
Prices dipped to a six month low of USD 49.36/barrel on Monday on concerns of excess supply and worsening economic outlook in China. Brent fell 18% in July, while WTI crude dropped 21%, which was its biggest monthly decline since the 2008 financial crisis.
Prices fell on Monday after Reuters survey showed OPEC output rose to a new high in July. The excess supply situation could worsen further if Iran is able to hit the market with higher output immediately after the sanctions are lifted.
Still, a minor recovery is being witnessed today, mainly on account of the weakness in the USD, triggered largely by the uptick in the AUD/USD pair.