Oil prices fall further

Oil price drop

Oil price drop

10 August 2015 – Crude oil futures fell on Monday in early Asian trading, touching fresh multi-month lows after disappointing data from China over the weekend showed exports tumbled in the world’s second largest economy.

Exports fell 8.3% in July, the biggest decline in four months, as weaker global demand for Chinese goods and a strong yuan policy hurt manufacturers.

Producer prices in July were at the lowest point since late 2009, during the aftermath of the global financial crisis, and have been sliding continuously for more than three years.

China’s economy is officially forecast to grow at 7% this year, strong by global standards but some economists believe it is growing at a much slower pace.

Brent was down 22 cents at $48.39 a barrel early on Monday, after touching a more than six-month low of $48.26.

US crude fell 18 cents to $43.69 and fell to $43.35 earlier, a nearly five-month low.

Both benchmarks have fallen for six straight weeks, weighed down by chronic oversupply and sagging demand.

US production rose to near the highest level since the 1970s in the last week, edging up to 9.5 million barrels per day, according to government data.

Oilfield services firm Baker Hughes’ said on Friday that the US oil rig count had risen by six, adding to bearish sentiment for crude as it signalled production could creep up from higher drilling activity.

Drillers have added a total of 32 oil rigs over the past three weeks.

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