AFP, Singapore :
Oil prices slid to a fresh six and a half year low in Asia Thursday, approaching the key $40 a barrel level after a surprise rise in US inventories added to concerns of a supply glut.
US benchmark West Texas Intermediate (WTI) for delivery in September, which expires Thursday, dipped 21 cents to $40.59 in afternoon trade after falling sharply in New York to its lowest level since March 2009. Brent crude for October dropped 28 cents to $46.88 a barrel.
“US stockpiles unexpectedly expanded when the market was looking at a contraction, which heightened the global oversupply concerns,” said Bernard Aw, a market strategist at IG Markets in Singapore.
“This added pressure to crude prices, and we see WTI drop below $41, heading towards the key $40 level. We could see more downsides, given that the current conditions remain unfavourable to oil.”
Oil prices slid to a fresh six and a half year low in Asia Thursday, approaching the key $40 a barrel level after a surprise rise in US inventories added to concerns of a supply glut.
US benchmark West Texas Intermediate (WTI) for delivery in September, which expires Thursday, dipped 21 cents to $40.59 in afternoon trade after falling sharply in New York to its lowest level since March 2009. Brent crude for October dropped 28 cents to $46.88 a barrel.
“US stockpiles unexpectedly expanded when the market was looking at a contraction, which heightened the global oversupply concerns,” said Bernard Aw, a market strategist at IG Markets in Singapore.
“This added pressure to crude prices, and we see WTI drop below $41, heading towards the key $40 level. We could see more downsides, given that the current conditions remain unfavourable to oil.”
