Oil retreats further from $50-a-barrel
On Wednesday, crude prices tumbled during early Asia trade as market participants adopt rather a cautious stance ahead of the weekly American oil inventory data as well as an upcoming OPEC gathering planned for Thursday.
In New York, July delivery sweet, light crude futures were worth $48.74, showing a 0.7% tumble. Simultaneously, August Brent oil futures sagged 0.8%, trading $49.50 per barrel.
Overnight, oil brushed against the crucial $50 level quickly before retreating, thus repeating last week’s pattern amid bearish hopes that the strong surge might have appeared to be overextended, mostly due to sudden supply disruptions.
Wildfires in Canadian oil-sand hub as well as the everlasting political crisis in Nigeria pushed crude prices to almost an eight-month peak, though as Canada is currently set to go on with its regular crude operations this week, financial experts wonder how long various bullish factors can last.