Many investors have lost the stomach for the market after a wild ride since last summer, when shares crashed 40 per cent. Beijing intervened to stem that rout and orchestrate a recovery of sorts, but anyone who mistook that for a bottom and bought in will have lost their shirt again in January.
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Brent crude had declined 60 cents to $31.20 a barrel by 0134 GMT, after settling up $1.30, or 4.26 percent, at $31.80 a barrel on Tuesday.
Crude futures fell on Tuesday, dropping below $30 a barrel and extending the previous day’s losses by more than 3 percent, as worries about oversupply by top producers combined with more signs of a Chinese economic slowdown to spook the market.
The oil-led market turbulence since the start of 2016 has raised hopes of more aid from major central banks. “The market needs to see inventories come down to levels that allow prices to recover and investments to return”, El Badri said in a speech at London’s Chatham House, according to the Financial Times.
ASIA’S DAY: The Shanghai Composite dropped 6.4 percent to finish at 2,749.78, the lowest since December 2014, when the index was beginning a rally that peaked last June.
Mr Kang said the market would also be looking at exact oil volumes supplied by Iran and the United States, as well as any shifts in other Opec members over output.
World Bank economists slashed their 2016 oil price forecast on Tuesday, saying weak demand would continue even as oil supply grows with the resumption of Iranian exports, continued US production and a mild Northern Hemisphere winter. Oil prices have dropped around 18% since the beginning of the year and analysts said prices would likely stay volatile at least until the end of the first half.
Futures decreased as much as 2.8 per cent in NY after dropping 5.8 per cent Monday.
Oil prices were lifted Tuesday by talk of possible coordination between Saudi Arabia and Russian Federation to cut petroleum output.
Brent crude – down more than 3% today – is down 7% this week so far.
Treasury prices bounced off early lows as stocks backed off their highs; the yield on the benchmark 10-year note ended flat at 2.01%.
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“We plan to reduce activity at all of our producing assets”, said president and chief operating officer Greg Hill in a statement. The approach of the Lunar New Year didn’t help, as players become reluctant to invest for fear of any unexpected sharp falls in overseas markets.
