Oil prices retreat with global markets as more rigs restart

AFP, SINGAPORE:  Oil prices slipped again yesterday, extending last week’s losses and mirroring a sell-off across Asian markets fuelled by worries about the global economy, Britain’s future in the EU and producers bringing more rigs back online.
The retreat comes after US benchmark West Texas Intermediate last week hit an 11-month high thanks to a weaker dollar, which makes the commodity cheaper for anyone using other currencies.
Dealers are cautiously awaiting meetings of the US Federal Reserve and Bank of Japan this week hoping they will at least provide some guidance on monetary policy.
There is also increasing nervousness that Britain will vote to exit the European Union, with some opinion polls saying the “leave” camp in front just over a week before the June 23 referendum.
There are worries that such a decision could lead to a fresh wave of turmoil across global markets.
“This week as well as the next will likely see increased volatility in the markets. The tide surrounding the Brexit sentiment will quickly shift as headline polls drive trading,” Bernard Aw, a strategist for IG Markets wrote in a note.
“While there are no expectations for action from the Federal Reserve and the Bank of Japan, their post-decision comments will still matter. In particular, the Fed’s economic projections will be scrutinised,” he added.
At about 0700 GMT, WTI was down 62 cents, or 1.26 percent, at $48.45 a barrel while Brent fell 61 cents, or 1.21 percent, to $49.93.
BMI Research analyst Peter Lee told AFP companies were restarting rigs as prices had risen above the $50 mark that makes its financially viable to pump crude again.

Oil prices retreat with global markets as more rigs restart

AFP, SINGAPORE: Oil prices slipped again yesterday, extending last weeks losses and mirroring a sell-off across Asian markets fuelled by worries about the global economy, Britains future in the EU and producers bringing more rigs back online. The retreat comes after US benchmark West Texas Intermediate last week hit an 11-month high thanks to a weaker dollar, which makes the commodity cheaper for anyone using other currencies. Dealers are cautiously awaiting meetings of the US Federal Reserve and Bank of Japan this week hoping they will at least provide some guidance on monetary policy. There is also increasing nervousness that Britain will vote to exit the European Union, with some opinion polls saying the leave camp in front just over a week before the June 23 referendum. There are worries that such a decision could lead to a fresh wave of turmoil across global markets. This week as well as the next will likely see increased volatility in the markets. The tide surrounding the Brexit sentiment will quickly shift as headline polls drive trading, Bernard Aw, a strategist for IG Markets wrote in a note. While there are no expectations for action from the Federal Reserve and the Bank of Japan, their post-decision comments will still matter. In particular, the Feds economic projections will be scrutinised, he added. At about 0700 GMT, WTI was down 62 cents, or 1.26 percent, at $48.45 a barrel while Brent fell 61 cents, or 1.21 percent, to $49.93. BMI Research analyst Peter Lee told AFP companies were restarting rigs as prices had risen above the $50 mark that makes its financially viable to pump crude again.