Oil prices have fallen dramatically, losing more than 4 percent, which was due to increased concerns about a slowdown in economic growth. Data on oil stocks in the Cushing terminal also put preasure on black gold.
"The deterioration of the forecast of world economic growth, uncertainty in financial markets and their impact on the demand for oil is likely to exacerbate the trend of growth in demand from the industry," - noted experts Barclays.
The pound dropped to a new 31-year low and the correlation between the British currency as a risk barometer and oil prices is obvious. Experts also believe that the data for China, which will be released in the coming weeks, will point to a weakness in the area of trade and investment.
In addition, Genscape said that for the week ending on July 1, oil terminal in Cushing rose by 230,025 barrels.
It was reported that the number of drilling rigs in the US rose last week by 11 units to 341 units and this continue to influence the trading dynamics. It was the fourth weekly gain in the past five weeks. Growing drilling activity in the US has increased speculation that production may increase in the coming weeks, renewing concerns about excess inventories.
The cost of the August futures for US light crude oil WTI fell to 46.83 dollars per barrel.
The price of August futures for Brent fell to 47.97 dollars a barrel on the London Stock Exchange ICE Futures Europe.