<p>Oil prices fell towards four-month lows on Tuesday (28 July), dropping for a fifth straight session on persistent worries about a global supply glut, while stock market sell-offs on both sides of the Pacific also rattled investor sentiment.<br><br>Asian stocks fell to three-week lows, with a deepening rout in Chinese stocks heightening fears about the financial stability of the world's second biggest economy and top energy consumer.<br><br>Uncertainty over the health of the Chinese economy, reflected in the sell-off in the stocks, lacklustre US oil demand and increasing oil supplies all added to investors' negativity about oil prices, said Jonathan Barratt, chief investment officer at Sydney's Ayers Alliance<br><br>"Technical levels continue to break. It's a trend which says investors are selling," Barratt said. "It's all about sentiment - it's a one-way traffic."<br><br>Brent dropped 36 cents to $53.11 as of 0430 GMT after 2 per cent drop in the previous session. It dipped to $52.89 earlier, hovering close to a four-month low of $52.83 reached on Monday.<br><br>US crude dropped 20 cents to $47.19 a barrel after ending the previous session down 75 cents. It fell below $47 post-settlement, the lowest since March 24.<br><br>The bearish sentiment will continue, testing technical support levels, although oil prices are expected to end 2015 higher than at current levels, according to a note from Phillip Futures on Tuesday.<br><br>"For today, we believe the next support for WTI and Brent to be at $46.73 and $52.40. Provided the bearish trend continues, lower supports of $45.90 and $50 could be tested," it added.<br><br>Investors are now eyeing weekly data on US inventory levels for further trading cues.<br><br>US commercial crude oil stocks likely slipped last week after crossing the five-year seasonal average build in the previous week, a preliminary Reuters poll of analysts showed ahead of industry and official weekly reports.<br><br>Crude stocks fell about 300,000 barrels to 463.6 million barrels in the week ended July 24, analysts estimated.<br><br>"We're not seeing the level of demand in the US one usually expects related to the summer drive-time," Barratt said.<br><br>"The world is awash with oil," he added.<br><br>(Reuters)</p>
_20240527192124_original_image_21.webp)
_20240428142749original_image_31.webp)