Oil in London traded below $50 a barrel near a six-month low amid speculation Iranian supplies will exacerbate a global surplus as demand from the U.S. to China slows.
Brent futures were little changed after falling 5.2 percent on Monday to below $50 for the first time since January. The Obama administration won support from Gulf Arab allies for its nuclear deal with Iran, which has pledged to boost production when sanctions end. U.S. refineries, which turned a record amount of crude into gasoline during July, typically slow down from August through October for maintenance.
Oil is trading in a bear market as expanding supplies and signs of slower economic growth in China fueled a rout in commodities from gold to copper. While U.S. crude stockpiles are forecast to have slid last week, they’re still about 95 million barrels above the five-year seasonal average level.
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