Oil Prices Slides for the Second Session as Over Supply and China’s Slowing Demand Worry the Market
There is no respite for crude prices at least not right now. On Tuesday, oil prices dropped for a second consecutive session in Asian trade. The reasons behind the slide are mainly related to slowing demand in China, which is the leading energy consumer and also oversupply of oil in the market. The prospect of Russia's talks to OPEC members regarding production cuts had offered some support to the price but looking at its bleak outcome prospects, oil prices once again started its slide.
Key global benchmark Brent for April delivery fell 46 cents to $33.78 per barrel at 0146 GMT. Even, contract for West Texas Intermediate in March dipped 49 cents at $31.13.
In the United States, things look a shade better as the oil prices are still holding a level almost nineteen percent more than its twelve year low of $26.19 noted in the middle of January.
Ben Le Brun, market analyst at Sydney's OptionsXpress, pointed at the concerns of the oil supply glut and the weaker economic data and said, "(Prices) have just come back to reality a bit, although they are holding water above $30 a barrel."
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