Brent Crude on Brink of Bear Market Amid Global Supply Brent crude traded on the brink of a bear market on speculation that Saudi Arabia will maintain output amid swelling supplies from the U.S. and Russia and signs of slowing demand. Futures in London rose 0.3 percent after sliding yesterday to the lowest since June 2012. Prices are almost 20 percent below their previous peak, the common definition of a bear market. Saudi Arabia, the biggest exporter, cut prices this week to the lowest since 2008 for Asia, raising speculation it’s prepared to let prices fall rather than cede market share. The U.S. in July exported the most oil since March 1957, according to data from the Energy Information Administration. “Demand is certainly not keeping up with the increases we’ve seen with supply,” said Michael McCarthy, a chief strategist at CMC Markets in Sydney. “We saw that last month, the U.S. exported more oil than it had for 57 years, and that’s speaking directly to the supply issue.” Brent for November settlement gained 35 cents to $93.77 a barrel on the London-based ICE Futures Europe exchange at 3:48 p.m. Singapore time. The contract decreased 74 cents to $93.42 yesterday, the lowest close since June 28, 2012. The volume of all [...] newsintx/brent-crude-on-brink-of-bear-market-amid-global-supply/
Posted on: Fri, 03 Oct 2014 09:31:30 +0000
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