Oil Drops over 2 Percent as China Slowdown Weighs; Market Loses Faith in Rebound

Crude oil prices fell over 2 percent on Monday as China’s economic slowdown dented the outlook for demand and traders are placing record bets on even lower prices as they increasingly lose faith in a significant market recovery.

Global benchmark Brent was down 89 cents, almost over 2.6 percent, to $32.66 per barrel at 0319 GMT (10.19 p.m. ET on Monday), and U.S. West Texas Intermediate (WTI) crude was down about 2.3 percent to $32.39.

Monday’s decline adds to last week’s more than 10 percent drop in both Brent and WTI prices to start the year. Traders and investors have wondered how long and deep the slide may go with Goldman Sachs saying oil could hit $20 a barrel.

Reuters

Craig Erlam
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the BBC and The Telegraph, and he also appears regularly as a guest commentator on Bloomberg TV, CNBC, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.