Overview of the oil market: a sharp drop in "black gold"
By the end of trading on Tuesday oil and petroleum products fell by 4.3%, which is the most significant drop since February. Such a strong fall is associated with an increase in the interest rate by the Bank of China by 0.25%. As the slowdown of the Celestial Empire economy may have a bad impact on global demand for oil, investors decided to intensify sales. For the first time since the end of September oil price fell below $80 a barrel.
Crude oil inventories are expected to rise by 2.1 million barrels today. The forecast also calls for a decline in heating oil and gasoline inventories.
At NYMEX oil fell by $3.59 (4.24%) to $79.49 a barrel. Brent oil on the London Mercantile Exchange fell by 4.18% to $80.84 per barrel.