Oil prices settled down nearly 2 percent on Thursday, hitting April lows and with U.S. crude headed for its biggest monthly loss in a year, on growing worries that the world was pumping more crude than needed.
Oil prices are still up about 60 percent from 12-year lows of $26-$27 in the first quarter. But the rally has faded since they breached $50 in May.”Our price target right now is $38 for WTI,” said Matthew Tuttle, chief executive of Tuttle Tactical Management in Riverside, Connecticut. “We think there’s more to go on the downside because the move that we saw up to $50 was fundamentally driven but that created more supply.”
U.S. crude’s West Texas Intermediate (WTI) futures settled down 78 cents, or 1.9 %, at $41.14 a barrel. WTI earlier fell to $41.04, its lowest since April 20. It also has lost 20 % since hitting a 2016 high of $51.67 on June 9, technically placing it in bear market territory.
Brent crude futures fell 77 cents, or 1.8 %, to settle at $42.70, after falling earlier to $42.56, the lowest since April 18.