Published on : Jul 09, 2015
A small rise in oil prices was seen in Asia on Thursday but it remained subdued by rising concerns regarding a slump in China’s stock market and Greece’s debt crisis, analysts say.
What added to the pressure in face of a glut in the oil supply were the robust supply from the United States’ crude inventories, making matters that looked positive for a while again look gloomy.
For August delivery, the U.S. benchmark for West Texas Intermediate was up by 52 cents, rising to US$52.17 and the benchmark for Brent crude for August observed a rise of 57 cents and valued US$57.62 per barrel during late morning sales post the recent massive losses.
Analysts from the oil and gas sector state that the mounting uncertainties from the bailout of Greek economic crisis and the recent slump observed in Chinese stock market have put the overall demand for oil on a global level at high risk.
Commodity prices have rocked bottoms in this week with prices of crude oil suffering their largest sell-off in the past five months, observing a decline of more than 8 per cent.
Chinese stocks have observed heavy blows after the government was unable in staunching the blood-letting that destroyed around a third of the main share market of the country in time less than a month.
Shanghai stocks also observed wild trading this morning as the government tried to improve the situation of the stock market of world’s topmost energy consumer.
Analysts say that such as huge blow to a stock market can affect a lot of people by bringing losses to their finances, thereby reducing domestic spending, a factor that has already been waning in recent times.