Oil sees moderate gains, but down 11% this month

FXStreet (Mumbai) – Oil prices witnessed moderate strength on Tuesday on the back of weakness in the USD index, but are still down almost 11% this month.

Concerns of Oversupply

Expectations of more Iranian supply following a nuclear deal and concerns that economic worries in China and Europe will weigh on demand have put pressure on oil this month.

Last week, the International Energy Agency said it expected global oil demand growth to slow next year to 1.2 million barrels per day (bpd) from 1.4 million bpd this year. A slowdown in demand is further expected to add to oversupply worries.

At the time of writing, WTI crude for September delivery is trading 0.40% higher at USD 50.64/barrel. Front month Brent crude is trading at USD 56.80/barrel, up 0.27% on the day.

Oil prices witnessed moderate strength on Tuesday on the back of weakness in the USD index, but are still down almost 11% this month.

(Market News Provided by FXstreet)