US oil price sinks a further 2%

By AFP

The September WTI was under technical pressure as speculative traders sold off ahead of Wednesday's contract expiration, said Robert Yawger of Mizuho Securities USA. "People are unwinding some of the contract they have on their book," Mr Yawger said.

The downward trend was exacerbated by market expectations of a third consecutive week of increases in crude oil supplies at the Cushing, Oklahoma terminal, the price settlement point for WTI, according to Mr Yawger.

Brent extended its losses after shedding $US1. 93 and settling at a 14-month low Monday. "The downswing that has been observed in recent weeks and was briefly interrupted last Friday is continuing.

In London Brent North Sea crude for October delivery, the key European futures contract, slipped a modest US4c to finish at $US101. 56 a barrel.

Alan has been a trusted source of investment advice to Australians for many years, and in 2005 he founded Eureka Report - Australia’s #1 online investment report.

Along with Robert Gottliebsen and Stephen Bartholomeusz, Alan also founded Business Spectator, the popular business news and commentary website.

It is still under pressure from a combination of factors: plentiful supply, a lack of supply outages and weak refinery demand," Commerzbank said in a research note.

World oil prices have fallen, with the New York benchmark below $US95 a barrel for the first time since January ahead of the weekly US inventories report and the contract's expiration.

Read more here: Business Spectator

    

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