Oil Prices Tumble

Oil Prices TumbleOil Prices Tumble

Oil prices fell in Asia on Monday as traders took profits, snapping gains last week that saw the biggest two-day rally in six years.

Brent crude futures for October delivery slipped more than $1, or 2%, before recovering, although that still put the benchmark on track for its fourth straight monthly decline, having risen in only two of the past 14 months, Reuters reported.

“There is definitely a lot of profit-taking going on,” said Daniel Ang, an analyst at Singapore’s Phillip Futures.

“There is some readjustment in the positions taken by traders.”

The fall came after Brent climbed 10 percent last week, while US crude finished the week up 12%.

Brent fell  to $49.29 per barrel at 0500 GMT after rising $2.49, or 5%, in the previous session. It fell more than $1 to $48.95 earlier in the session.

US crude for October delivery fell 63 cents to $44.59 per barrel after settling up $2.66, or 6.3%, in the previous session.

“Mixed signals by US financial policymakers last week on whether the US Federal Reserve would raise interest rates next month was weighing on sentiment,” Ang said.

Some Fed policymakers left the door open to a September interest rate hike at an annual central bankers’ meeting on Friday in comments that appeared to contradict those by the New York Fed president earlier in the week who said a rate increase seemed “less compelling”.

The comment came after turmoil in global markets in recent weeks following China’s currency devaluation and concerns over its slowing economy.