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Weak fundamentals pull down oil prices after short-lived rally

Published 2015-08-10, 09:02 p/m
Weak fundamentals pull down oil prices after short-lived rally
LCO
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CL
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SINGAPORE, Aug 11 (Reuters) - Oil prices slumped in early
Asian trading on Tuesday following a jump in the previous
session, underscoring the market view that fundamentals are too
weak to warrant a push much higher.
Crude oil futures jumped almost 4 percent on Monday, moving
away from January-lows, as speculative traders increased their
net-long positions, but prices slumped again on Tuesday morning
and remain over a quarter below their most recent peaks in May.
Front-month Brent futures LCOc1 were at $50.19 a barrel at
0048 GMT, down 22 cents from their last close. U.S. crude CLc1
fell 19 cents to $44.77.
The low prices come on the back of weak supply and demand
fundamentals, with output from key producers like the
Organization of the Petroleum Exporting Countries (OPEC), Russia
and the United States near record highs just as demand growth
slows.
In China, the world's No.2 economy and oil consumer, exports
tumbled 8.3 percent in July in their biggest fall in four
months, threatening the government's 7 percent economic growth
target for this year, already the lowest in decades.

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