That didn’t last long. After rallying for a few weeks, getting everyone excited that demand could be picking up, crude has resumed its descent.
Bloomberg: “The health of the global economy is the dominant consideration in the short term, and that is weighing down on prices,” said Harry Tchilinguirian, senior market analyst at BNP Paribas SA in London. “OPEC cuts may prove to be supportive in future but it’ll take time for them to take effect.”
Crude oil for February delivery fell as much as $2.40, or 5.9 per cent, to $38.43 a barrel in electronic trading on the New York Mercantile Exchange. It was at $38.52 a barrel at 11:28 a.m. in London.