LONDON: On Monday, oil prices dropped by more than $4 a barrel as supply concerns grew in response to disappointing Chinese economic data.
After closing 1.5% down on Friday, Brent crude futures dropped $4.75, or 4.84%, to $93.40 a barrel by 12:01 GMT.Following a session-high 2.4% decline, US West Texas Intermediate crude was down $4.52, or 4.91%, at $87.57.
The open interest in Brent crude this month is 20% lower than it was in August of last year.Because of the volatility, some market participants are choosing not to touch open interest, which is still declining. That, in my opinion, is what is causing heavier volumes on the downside.
