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

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Craig Erlam

Craig Erlam

Senior Market Analyst - UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam