Texas light sweet grade of crude oil, also known as the West Texas Intermediate crude, has once again sneaked below a psychological barrier of $30-a-barrel, 3 days after it breached this level for the first time in 12 years.
WTI crude is currently trading at $29.72 a barrel, down $1.48 from the previous session’s close. Last Tuesday, oil fell to $29.93 a barrel before recovering and holding above the $30 mark.
Brent crude, the benchmark used to price 2/3rd of the World’s internationally traded crude oil supplies, is also below $30 and is currently down $0.89 at $29.99.
Oil is hit by the double whammy of muted demand outlook, as the world economies slow, and oversupply fears. China, considered a driver of commodity demand, has seen its economy slow substantially. Reacting to the grim outlook, the nation’s key stock market gauge, the Shanghai Composite Index, is on a free fall and has entered bear market territory by virtue of a 20 percentage plus drop from a recent low.
The material has been provided by InstaForex Company – www.instaforex.com