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Oil prices climb, but stay in bear market territory

Published 2015-07-23, 09:29 p/m
© Reuters. Oil prices climb, but stay in bear market territory
DXY
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SINGAPORE, July 24 (Reuters) - Oil prices rebounded in early
Asian trade on Friday after settling at their lowest in months
in the previous session as worries over the demand outlook and
continued oversupply weighed on the market.
U.S. crude for September delivery CLc1 traded 39 cents
higher at $48.84 a barrel by 0105 GMT, after closing down 74
cents, the lowest settlement since March 31.
The benchmark has slumped more than 20 percent in the past
six weeks, a slide which is considered by many traders to
constitute a bear market.
Brent September crude LCOc1 was up 32 cents at $55.59 a
barrel. The contract had settled at its lowest since April, down
86 cents.
Both benchmarks are on track to post double-digit losses
this month, in part pulled lower by expectations of higher
Iranian exports following a deal over its nuclear programme with
world powers.
U.S. crude is down 17.8 percent so far this month and Brent
is down 12.6 percent.
A weakening dollar .DXY supports oil prices as it makes it
cheaper for holders of other currencies to buy
dollar-denominated commodities.
Oil prices could find additional support if the world's top
exporter Saudi Arabia cuts production after the summer in
reaction to lower seasonal domestic demand, as stated in a
report by an industry publication on Thursday. ID:nL1N1033TN
With a dim outlook for oil prices, the world's top oil
companies could be forced into more spending cuts, as they are
set to report yet another sharp drop in quarterly profits,
according to analysts. ID:nL5N1023IJ
"Oil companies are hunkering down for a downturn that will
take longer than some initially thought," said Martijn Rats,
head of European oil and gas equity research at Morgan Stanley.


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