Oil Enters Bear Market, Mauled By Supply Glut

Rukhshan Mir (@rukhshanmir) Published August 05, 2016 | 04:15 PM

LONDON, (APP - UrduPoint / Pakistan Point News - 5th Augst,2016) - Chronic oversupply sent oil prices slumping this week into a so-called bear market, losing 20 percent from recent June peaks above $50. In tumultuous trade on Wednesday, US benchmark West Texas Intermediate (WTI) struck $39.19 -- which was the lowest level since April 18. And on Tuesday, Europe's main contract Brent North Sea crude slid to $41.

51 -- which was also a trough last reached on that same day. Oil industry experts argue that the market got caught up in forecasts that supply and demand would shift into balance in 2016. The International Energy Agency had forecast in April that oil was expected to almost balance out in the second half of the year. "Crude prices have re-entered bear market territory," said analysts at London-based consultancy Energy Aspects in a research note.