Markets: Corrections extended

Oil prices fell on Monday while base metals moved lower as the correction on commodity markets continued into a second week.

The falls began following disappointing US retail sales and consumer confidence data, shaking the outlook demand in the context of hopes for a swift global economic rebound.

In energy markets, Nymex September West Texas Intermediate fell $1.58 to $65.92 a barrel while ICE September Brent lost $1.69 at $69.84 a barrel.

“We have repeatedly warned that the oil price increase of the past weeks and months was predominantly driven by financial markets and was not based on an improvement in fundamentals,” said Eugen Weinberg, analyst at Commerzbank: “The risk of a setback in the oil price is high as soon as support from financial markets abates. Hence, the correction is likely to continue.”

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