Oil Prices Drop
Monday, June 8th, 2015 -- 9:55 AM
(Reuters) -Oil prices slipped on Monday on news of a slide in China's fuel imports and as markets digested OPEC's decision to maintain its production target, which analysts said could prolong a supply glut for the rest of the year.China, the world's biggest net oil importer, bought nearly a quarter less crude in May than it did in the previous month, official data showed. China's imports of oil products also fell by more than 6 percent while oil product exports fell 10 percent.
The Chinese data came after the Organization of the Petroleum Exporting Countries agreed on Friday to maintain oil output at levels well above current demand, exacerbating a glut where millions of barrels of crude are stored without a buyer.
Brent for July dropped to a low of $62.70 a barrel on Monday before recovering to around $62.95 a barrel, down 36 cents. U.S. crude was at $58.70 a barrel, down 43 cents. Several analysts said they expected oil prices to fall in the wake of the OPEC meeting as supply gradually overwhelmed demand in many markets.
Feel free to contact us with questions and/or comments.