|
Prices are down around 15 percent since the start of the year,
dragged lower by a glut, China's weakening economy and stock
market turmoil, as well as the strong dollar, which makes it
more expensive for those using other currencies to buy oil.
Benchmark Brent crude fell to a low of $30.43 per barrel, a
level last seen in April 2004, before recovering to $31.75, up
20 cents or 0.5 percent, by 1142 GMT.
"Every time you hit new lows there's the potential for profit
taking, and as people try to pick the bottom of the market,"
said Richard Mallinson, geopolitical analyst at Energy Aspects.
U.S. crude West Texas Intermediate (WTI) fell to a low of $30.41
per barrel, a level last seen in December 2003, before crawling
back to $31.06, down 35 cents or 1.11 percent.
The overall tenor of the market remained bearish, analysts said.
Trading data showed that managed short positions in WTI crude
contracts, which would profit from a further fall in prices, are
at a record high, indicating that many traders expect further
falls.
China's slowing economy has also weighed on oil, which has shed
more than 70 percent of its value since mid-2004.
And while demand looks fragile, supply from key producers
remains robust.
Iraq, second-biggest producer within the Organization of the
Petroleum Exporting Countries (OPEC), plans to export a record
of around 3.63 million barrels per day from its southern oil
terminals in February, said trade sources citing a preliminary
loading program.
In industry news, Nigeria's oil minister said a "couple" of OPEC
members had requested an emergency meeting, adding that current
market conditions support the need to hold such a gathering.
Oil major BP announced plans to cut at least 4,000 jobs in the
face of oil's sustained declines.
Analysts at Barclays, Macquarie, Bank of America Merrill Lynch,
Standard Chartered and Societe Generale all cut their 2016 oil
forecasts this week.
StanChart analysts took the most bearish view: "We think prices
could fall as low as $10/bbl before most of the money managers
in the market conceded that matters had gone too far,"
(Additional reporting by Henning Gloystein in Singapore and
Aaron Sheldrick in Tokyo; editing by Dale Hudson and Jason
Neely)
[© 2016 Thomson Reuters. All rights
reserved.] Copyright 2016 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
|
