Tumbling oil trades below $30/bl for first time in 12yrs

January 12, 2016

Responsive image

Oil fell briefly below the widely watched $30/bl level on Tuesday, extending a sell-off that has sliced almost 20% off prices this year amid deepening concerns about fragile Chinese demand and the absence of output restraint.

Prices settled down 3%, a seventh straight daily decline for oil. Traders have all but given up attempting to predict where the new-year rout will end, with momentum-driven dealing and overwhelmingly bearish sentiment engulfing the market. Some analysts warned of $20/bl; Standard Chartered said fund selling may not relent until it reaches $10/bl.