Oil glut trade on brink of a return; Brent crude falls below $40

An oil trade that only works when the market is glutted may be about to make a comeback. That’s bad news for producers withholding near-record amounts of crude in a coordinated bid to help prop up prices. Crude futures in London, on Tuesday, fell below $40 a barrel for the first time since June 25. Brent crude was trading at $39.73 per barrel, down 5.43 per cent at 7.47 pm IST. 

The combination of a stalling Asian demand recovery, the end of the US summer driving season, and increased supply from the Opec+ alliance are signaling a bleak short-term outlook for