Oil Prices Resume Fall as Goldman Slashes Short-Term Outlook

Reuters

Hilsenrath: Low oil prices signal a weak China economy

Continue Reading Below

Hilsenrath: Low oil prices signal a weak China economy

Fox Business Contributor Jon Hilsenrath discusses his outlook for oil prices and inflation.

Oil fell 5 percent to its lowest in nearly six years on Monday, extending the second-deepest rout on record, after Goldman Sachs warned that prices would fall further and Gulf oil producers showed no sign of cutting output.

An unusual spate of major refinery glitches across the U.S. East and Midwest added to the concerns, threatening to accelerate a buildup of surplus crude.

Brent <LCOc1> fell $2.68, or more than 5 percent, to settle at $47.43 a barrel, its third-largest one-day decline since 2011 and its lowest close since March 2009. The decline was the 10th in the past 12 sessions.

Continue Reading Below

U.S. crude <CLc1> settled down $2.29 at $46.07, leading losses across the complex. Gasoline <RBc1> and ultra-low sulphur diesel (ULSD) <HOc1> futures fell by around 3 percent as refinery outages spurred some prompt buying.

"I figured we’d see $40 in the near term, but everything seems to be happening quicker than expected,” Tariq Zahir of Tyche Capital Advisors.


More On This...