Oil prices fell on Tuesday, inflating concerns that a two-month oil price rally may be fading, as explorers seek to contain the rise in supply which is on a pace.
The oil price has risen more than 45 per cent since mid-February ahead of a meeting next month of the world’s major producers to discuss an output freeze. But there is growing scepticism about the outcome of the meeting.
According to Saxo Bank senior manager Ole Hansen .”Verbal intervention, which has obviously helped the market greatly over the past two months, combined with a production slowdown in the U.S., has probably taken (oil) as far as it can. Now the market really wants to see some action,”
“We’re seeing more and more commentators raise the flag and saying ‘have we seen too much, too soon?’ in terms of the rally across the sector.”
Brent crude futures LCOc1 fell by $1.20 to $39.07 (27 pounds) a barrel by 1350 GMT, having lost 7 percent in the last week, while U.S. crude CLc1 dropped by $1.32 to $38.07.ps as investors grow weary of rising supply