The euro surged to a two-week high overnight, which had helped to support oil prices
On a day of developments, the search party, looking for the Coast Guard Flight that went missing on June 8, on Saturday picked up signals believed to be from the aircraft as well as detected oil spills in an area, off the coast of Cuddalore. (Photo
Singapore: Oil prices fell close to four month lows in early Asian trade on Tuesday after stock market sell-offs on both sides of the Pacific rattled investor sentiment about the Chinese economy, adding to concerns about a global oil glut.
Both the dollar and euro held steady in early Asian trade after the dollar index slipped 0.7 per cent in the previous session. The euro surged to a two-week high overnight, which had helped to support oil prices. “Technical levels continue to break. It’s a trend which says investors are selling,” said Jonathan Barratt, CIO, Sydney’s Ayers Alliance. Uncertainty over the health of the Chinese economy, reflected in the sell-off in Chinese stocks, lackluster oil demand in the US and increasing oil supplies all added to investors’ negativity about oil prices, Mr Barratt said. Brent for September delivery dropped 53 cents to $52.94 as of 02:40 GMT after falling $1.15, or two per cent, in the previous session. The benchmark fell as low as $52.90 post-settlement, its lowest since mid-March
US crude for September delivery dropped 35 cents to $47.04 a barrel after ending the previous session down 75 cents.
( Source : reuters )
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