FXStreet (Mumbai) – The rout returns to markets, drowning both oil benchmarks to the lowest levels in more than twelve years on skewed fundamentals, with overhang of massive supplies across the globe.
Risk-off at full steam
Currently, WTI slumps -4.76% to 29.71, while the Brent oil sinks -3.19% to 29.89, cheapest levels since 2003.
Oil markets came under renewed selling pressure after the black gold breached the crucial $ 30 mark on weak global demand outlook for oil. While on the other side, forecasts that oversupply is likely to haunt markets until late 2017, acts as the main culprit for the ongoing oil price falls.
Further, prospects of Iranian oil flooding the markets, once Western sanctions are lifted in the upcoming days, also dents the investors’ sentiment.
CMC Markets analysts Jasper Lawler, “Iran has been vocal about its plans to open up the floodgates for its oil exports once the sanctions are lifted, so much so that OPEC could not reach an agreement on output quotas at its last meeting.”
(Market News Provided by FXstreet)