Oil Falls in Thin Summer Trading on Signs of Rebounding Supply
- Crude in strong backwardation, indicating constrained supply
- Growing demand risks in China also are weighing on prices
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Oil fell on signs that supplies may be rebounding and concerns that economic growth in China is headed for a slowdown.
West Texas Intermediate slipped below $81 a barrel after trading in a range of almost $2 on Monday. Oil prices diverged from broader markets after Reuters reported that Iraq’s oil minister plans to discuss resuming oil exports through the Ceyhan terminal in Turkey. Adding to bearish sentiment are surging monthly oil exports from Iran, which are swelling global flows at a time when other producers are cutting back.