After blip, oil prices keep heading south
Oil prices returned to their downward course as declines in prices darkened mood among investors.
NEW YORK (AFP) - Oil prices returned to their downward course on Monday, as extended declines in prices darkened the mood among investors.
A barrel of West Texas Intermediate for September delivery, the US benchmark, fell $1.54 to $40.06 a barrel after having wavered around the $40 threshold during the day on the New York Mercantile Exchange.
The contract price for WTI has fallen almost 22 percent since hitting a high for the year on June 8 but it has not closed under $30 in 15 weeks.
In London, North Sea Brent for October delivery fell $1.39 to $42.14 a barrel on the Intercontinental Exchange.
On Friday, the price in New York had briefly risen on word of weaker-than-expected US economic growth figures, which caused the dollar to fall.
Phil Flynn of Price Futures Group said it was in the nature of the bear market to be self-reinforcing.
"With commodity hedge funds having their biggest short position in history, they have a tendency to be able to push the market down when there s no news," he said.
"The market has been down seven of the last eight days. It s extremely oversold," said Flynn.
"So we could muster a rebound if we close above $40 but other than that the mood is just really negative."
