Market Sentiment Stay Bearish as Oil Prices Steadies
During early trading on Thursday oil prices stay calm after beating new 2003 lows during its previous session, but at Capital Street Research Desk we believe that the continuous glut in the global market would keep its pressure on the markets.
During Wednesday trading for the first time since 2003, U.S. oil #futures tumbled below $27 per barrel, after price was trapped in a far-reaching decline across world financial markets as $traders become nervous over the excess supply in crude coupled with an economic slowdown in the world’s second largest economy, China.
Oil prices was seen steadying on Thursday, appreciating 31 cent from its prior close is the spot-month West Texas Intermediate (WTI) crude futures at $28.66/barrel at 01:55 GMT.
Also higher by 37 cents at $28.25 is the international benchmark Brent.
However, wider market sentiment are staying bullish as global oil exporters pump 1-2 million barrels of crude oil daily in surplus demand, generating a massive storage project. Seemingly, there are growing concerns that the Chinese economy would lose steam further along the line, thereby hurting demand.
HSBC noted on Thursday that, “Lower commodity and oil prices reflect weakening demand.”