Crude oil prices steadied today amid short-covering after a week-long selloff but were on track to end the month about 15% lower on persistent glut concerns, with the biggest decline seen for U.S. crude in a year.
Crude oil prices fell to their lowest levels since April today, with Brent on track for its biggest monthly loss since December 2015, pressured by slowing economic growth that threatened to increase a supply overhang of crude and refined products.
Crude oil prices fell close to three-month lows today after U.S. industry data showed weekly oil stocks declined by less than expected, feeding into concerns over persistent oversupply dragging down prices.
A ballooning spread between the price of U.S. and European oil, coupled with lower shipping costs, has traders scrambling to take advantage of what may be a brief window of opportunity to ship crude to higher priced markets.
Gold rallied to its highest since 2014 today and crude struggled to recover from deep losses, as renewed fears over the impact of Britain's exit from the European Union pushed investors toward safe havens.
Crude oil prices eased today as the market's focus returned to oversupply as production from Nigeria and Canada revived, and Organization of the Petroleum Exporting Countries output reached a record high in June.