Oil drops as August price soar seen overblown
On Monday, crude prices sagged as financial experts doubted that upcoming producer talks would stop oversupply, pointing out that Brent would likely rebound below $50 per barrel as August's more than 20% crude growth looks overblown.
Surging exports of refined products from China also applied pressure on prices, as it was observed as the latest clue of an everlasting global fuel glut.
China's July exports of diesel as well as gasoline grew by 181.8 and 145.2% respectively compared with the same period in 2015, to 1.53 million tonnes and 970,000 tonnes each, thus putting pressure on refined product margins .
Brent crude futures were worth $49.93 per barrel, down 1.87%.
American West Texas Intermediate crude futures tumbled 1.73%, trading at $47.68 per barrel.
Financial experts cast doubt on an August price growth, telling that much of it was a result of short-covering as well as anticipation of upcoming producer talks to discuss means to suppress oversupply.