Brent prices declined today over apprehensions regarding the global economy and the impact that could have on fuel demands.
Since the beginning of April Brent has lost ten percent of its price, mainly due to slow growth in the US and China, while the recession in Europe has become more severe.
The US Commodity Futures Trading Commission (CFTC) has said that hedge funds and other large speculators have reduced their net long US crude futures and options positions in the week to 16 April.
On Saturday, world finance officials requested countries take an alternative approach to boost growth and create jobs, as monetary policy alone cannot reinstate confidence in the weak global economy.
Investors will now keep a close watch on the data from China and the US this week to get a better understanding of growth in demand.
A Reuters survey anticipates the US economy to expand at a 3.0% clip, up from 0.4% in the last three months of 2012.
Image: Brent has lost ten percent, mainly due to the slowing of growth in the US and China. Photo courtesy of freedigitalphotos / Michelle Meiklejohn.