Oil Sinks Back Below $50 as Market Awaits Signs of Supply Drop - Bloomberg

Oil Sinks Back Below $50 as Market Awaits Signs of Supply Drop - Bloomberg:

"Oil ended a short-lived spike above $50 a barrel in New York as investors wait for more evidence that global markets are rebalancing.

Futures closed 2 percent lower, the biggest drop in more than a week. After rising production in Libya led an increase in OPEC output in July, all eyes are turning to U.S. supplies. Crude and fuel stockpiles probably declined last week, according to a survey before a report from the Energy Information Administration Wednesday. The industry-funded American Petroleum Institute will release its inventory data later on Tuesday.

The $50-level is “a psychological level. People are really beginning to realize that the market probably needs a steady beat of bullish information to continue to rally,” Gene McGillian, market research manager at Tradition Energy in Stamford, Connecticut, said by telephone. “If we don’t get a really positive inventory report this week, the market is vulnerable to a nice little turnaround” after rallying the last couple of weeks, he said."



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