• Home »
  • »
  • MTECHTIPS:-Oil futures trade at lowest level since 2009 amid China turmoil

MTECHTIPS:-Oil futures trade at lowest level since 2009 amid China turmoil

MTECHTIPS:-Oil futures trade at lowest level since 2009 amid China turmoil

Crude oil futures traded at the lowest level in more than six years on Tuesday, as steep declines on China’s stock market rattled investors’ confidence. The Shanghai Composite tumbled 6% in volatile trade on Tuesday, with losses accelerating towards the end of the session despite fresh efforts by the government to calm the market. China’s central bank injected the largest amount of cash into the financial system on a single-day basis in almost 19 months in an effort to offset outflows in the wake of a weaker yuan. Market players are concerned that the plunge in the stock market could spread to other parts of the Chinese economy, triggering fears that the Asian nation’s demand for oil will decline. Worries that China’s recent devaluation of the yuan will slow down the country’s import of oil also weighed. The Asian nation is the world’s second largest oil consumer after the U.S. and has been the engine of strengthening demand. On the ICE Futures Exchange in London, Brent oil for October delivery hit an intraday low of $48.25 a barrel, the lowest level since January 14, before trading at $48.45 during European morning hours, down 29 cents, or 0.58%. A day earlier, London-traded Brent prices lost 45 cents, or 0.91%, to end at $48.74 amid lingering concerns over a global supply glut.
WWW.MTECHTIPS.COM
07489294118-119