Crude oil prices fall for fifth week, becomes the highest monthly drop since 2008

In the last week of July, crude oil markets continued to wriggle as US crude posted its highest monthly drop since the 2008 financial crisis, this time after a string of losses in July triggered by stock market slump in China and signs that top Middle East producers were pumping crude at record levels.

A higher US oil rig count for a second straight week added to the market’s downside despite a weaker dollar, which would normally support commodities. Heavy hedging activity in gasoline and diesel futures ahead of front-month contract expiration dominated play on the petroleum complex, diverting some attention from crude.

July ended with prices dropping significantly and posting fifth straight week of loss. The price drop was spurred by a stock market tumble in China and growing global oversupply. US had a slide of more than 2 percent on the week. July saw US crude down 21 percent, the highest monthly decline since October 2008, when oil had an epic collapse at the outbreak of the financial crisis. Brent was down by 5 percent on the week and 18 percent on the month.

Courtesy: Weekly PriceWatch Report