Oil Tumbles to Six-Year Low Amid CNY Devaluation, Supply Fears
Aug, 12th 03:41
China’s decision to devalue the yuan sent the U.S. oil benchmark tumbling Tuesday, settling at its lowest level in more than six years on worries over the health of the Chinese economy and the country’s appetite for crude.
Light, sweet crude futures for delivery in September fell $1.88, or 4.2%, to finish at $43.08 a barrel on the New York Mercantile Exchange, its lowest settlement price since March 2009..
Brent crude LCOU5, -0.69% the global benchmark, fell $1.23, or 2.4%, to $49.18 a barrel on London’s ICE futures exchange.
China’s decision to devalue the yuan will make imports of a number of commodities including crude oil more expensive.
The demand worries combine with supply fears, which have been the main driver behind a slump in oil prices.
The Organization of the Petroleum Exporting Countries on Tuesday said the group’s production rose to its highest level in more than three years. Members pumped 31.51 million barrels a day in July—a rise of 101,000 barrels a day over June to the highest level since May 2012.