Singapore: Oil prices fall as analysts say August price rally has been overblown

• Aug 22, 2016

Singapore: Oil prices fall as analysts say August price rally has been overblown

Monday, 22 August 2016 – SINGAPORE: Oil prices fell on Monday as analysts doubted upcoming producer talks would be able to rein in oversupply, saying that Brent would likely fall back below $50 a barrel as August’s over 20-percent crude rally looks overblown.

International benchmark Brent crude oil futures were trading at $50.43 per barrel at 0025 GMT, down 45 cents, or 0.88 percent.

U.S. West Texas Intermediate (WTI) crude futures were down 27 cents, or 0.56 percent, at $48.25 a barrel.

Analysts cast doubt on a recent oil price rally, saying that much of it was a result of short-covering and anticipation of upcoming oil producer talks in September to discuss means to curb ballooning oversupply.

With no fundamental tightening of the market in sight, they said that prices would likely come under downward pressure again soon. Read More?