Oil falls below $50, rebound chances nil

Oil has fallen to a six-month low, and hopes of a quick rebound are fading as demand heads into an autumn swoon.

Brent crude tumbled below $50 on Monday for the first time since January. Gasoline fell the most in almost three years.

The slump may have further to go. U.S. refineries, which turned a record amount of crude into gasoline during July, typically slow down from August through October for maintenance.

“We still have a lot of global oversupply,” Michael Wittner, head of oil-market research at Société Générale in New York, said on Bloomberg TV Monday. “We’re getting close to the autumn, [when] demand for crude and products hits a seasonal low point, so it’s hard to see where the uplift is going to come from.”

Also, demand for gasoline typically eases after summer as the seasonal workforce shrinks and families stop vacationing.

Hedge funds are growing more pessimistic. Money managers cut bets on rising Brent prices last week by the most in more than a year and are the least bullish on U.S. crude since 2010.

Follow Arabian Post

Select Arabian Post as your preferred source on Google and MSN News for trusted business news and Arab politics and updates.

Arabian Post on MSN News Arabia business and politics

Follow Arabian Post on Google News business coverage

Arabian Post Telegram channel Dubai news updates

Arabian Post Medium articles business insights

Notice an issue?

Arabian Post strives to deliver the most accurate and reliable information to its readers. If you believe you have identified an error or inconsistency in this article, please don't hesitate to contact our editorial team at editor[at]thearabianpost[dot]com. We are committed to promptly addressing any concerns and ensuring the highest level of journalistic integrity.