Brent Settles At 9-Month Low On Oversupply Fears, Weak Demand
NEW YORK, Aug 5 (Reuters) - Oil prices tumbled on Tuesday, with Brent crude falling to a nine-month low as ample supplies in Europe and North America outweighed fears that violence in the Middle East and North Africa could disrupt production.
Worries about prolonged geopolitical tensions in key producing regions had prompted a short rebound, but in the absence of supply disruptions, the market resumed its downward trend on Tuesday as traders and investors grew more nervous about seasonal weak demand and poor refinery margins in a market that appears to be abundantly supplied.
"We continue to see material risk to supply from Libya, Iraq and Russia, but the market over the past six weeks has become increasingly complacent regarding supplies," said Tim Evans, an energy futures specialist at Citigroup in New York.
Brent crude lost 80 cents to settle at $104.61, the weakest settlement since November 2013.
U.S. crude lost 91 cents to settle at $97.38, the lowest settlement since early February.
The spread <CL-LCO1=R> between the two benchmarks closed at $7.23.
Global oil demand has been running below supply over the past few months, building up a glut of high quality crude oil in the West African, European and Asian markets.
View Full Article
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.