Home Daily Blitz Tumbling Oil Trades Below $30 A Barrel For First Time In 12 Years
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Tumbling Oil Trades Below $30 A Barrel For First Time In 12 Years

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An oil pump jack can be seen in Cisco, Texas, August 23, 2015.   REUTERS/Mike Stone
An oil pump jack can be seen in Cisco, Texas, August 23, 2015. REUTERS/Mike Stone

The following is an excerpt from CATHERINE NGAI | January 12, 2015 | Reuters.com |

Oil fell briefly below $30 a barrel on Tuesday, extending a relentless selloff that has wiped almost 20 percent off prices this year amid deepening concerns about fragile Chinese demand and the absence of output restraint.

The day's near 4 percent drop marks a seventh day of losses 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 a barrel; Standard Chartered said fund selling may not relent until it reaches $10.

By Tuesday, the crash had become almost self-fulfilling, with speculators too afraid to buy for fear of being burned by another false bottom.

U.S. West Texas Intermediate crude(WTI) CLc1 was down $1.19 at $30.22 per barrel as of 2:19 p.m. EST (1919 GMT), a 3.7 percent loss, after touching a low of $29.93, which was last seen in December 2003.

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