Back
24 Aug 2015
Oil hitting 6 half year lows sub $40bbl
FXStreet (Guatemala) - Amongst the market turmoil and fierce price action and momentum, oil has crashed down through to below the psychological $40 bbl.
China weighs heavily on oil
The big news in Asia has seen China's benchmark Shanghai Composite index opened down as much as 5.2 percent to 3,321.4 and has continued to as low at down 7.5% at time of writing, even though the authorities of China have allowed pension funds managed by local governments to invest in the stock market. This is a significant decision which should attract significant capital flows, to the tune of hundreds of billions of yuan to support the struggling equity market.
Brent crude oil below $40
Brent and U.S. crude oil futures hit their fresh 6-1/2-year lows and spot has seen a low of 39.49 with a global supply surplus and China demand diminished by the slow down. USD/CAD has made fresh 9 year highs at 1.3246.
To rectify the situation, Iran's Oil Minister Bijan Zanganeh said over the weekend that an emergency OPEC meeting will be held and may be "effective" in stabilising the oil price.
China weighs heavily on oil
The big news in Asia has seen China's benchmark Shanghai Composite index opened down as much as 5.2 percent to 3,321.4 and has continued to as low at down 7.5% at time of writing, even though the authorities of China have allowed pension funds managed by local governments to invest in the stock market. This is a significant decision which should attract significant capital flows, to the tune of hundreds of billions of yuan to support the struggling equity market.
Brent crude oil below $40
Brent and U.S. crude oil futures hit their fresh 6-1/2-year lows and spot has seen a low of 39.49 with a global supply surplus and China demand diminished by the slow down. USD/CAD has made fresh 9 year highs at 1.3246.
To rectify the situation, Iran's Oil Minister Bijan Zanganeh said over the weekend that an emergency OPEC meeting will be held and may be "effective" in stabilising the oil price.