Crude Oil Prices Fall Further

Crude oil prices fell over 2 per cent on Monday as China’s economic slowdown dented the outlook for demand and traders are placing record bets on even lower prices as they increasingly lose faith in a significant market recovery. Global benchmark Brent was down 89 cents, almost over 2.6 per cent, to $32.66 per barrel at 0319 GMT, and US West Texas Intermediate (WTI) crude was down about 2.3 per cent to $32.39. Monday’s decline adds to last week’s more than 10 per cent drop in both Brent and WTI prices to start the year. Traders and investors have wondered how long and deep the slide may go with Goldman Sachs saying oil could hit $20 a barrel. Goldman analysts further said in a note on Friday that sustained lower prices are needed to in the first quarter “so producers will move budgets down to reflect $40 a barrel oil for 2016.”

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