Oil prices weakened for a fourth session on Tuesday on the back of weak political leadership in strategic part of the globe like Afghanistan and South China Sea. Investors were also concerned about the OPEC belief that the market does not need more crude.
Brent crude ended the session down 48 cents, or 0.7 per cent, at $69.03 per barrel, while U.S. West Texas Intermediate crude settled 70 cents, or 1 per cent lower at $66.59 a barrel. Both contracts had fallen for three straight sessions.
We continue to see $65 support in WTI but less forceful rebounds that see sellers pour in earlier, said Mr Craig Erlam, senior market analyst at OANDA.
A move below here would be a significant technical breakout and surely reflect serious concerns about growth in the coming months as investors are observing near lack of political leadership in strategically crucial parts of the world as Afghanistan and South China Sea.
The main world powers including the US, Canada, EU, Japan and Australia have demonstrated lack of vision for the repositioning of the important Central-Asian country on the path to democracy and stabilisation after the terrorist group took about two-third of the country under its control. Such passivity will have its resemblance in the markets moods.
Hedge funds and money managers cut net long positions in U.S. crude to the lowest since November in the week to Aug. 10 as resurgent coronavirus infections in several countries dampened hope for of a rapid resumption in long-distance air travel.