Oil markets slid today, with WTI dropping to its lowest level in three weeks, as many investors believe that the recent run up in prices might have been a bit excessive.
Both benchmarks received pressure today as investors sold off from fear that a slower global economy could reduce oil demand, especially in China and the U.S.
Other investors are holding out, as they await news tomorrow from the Fed's two-day meeting for some guidance on when the central bank might begin to curb its current $85 billion per month bond-buying stimulus program.
Focus tomorrow will also lie on this weeks EIA Inventory Report for a view into U.S. oil demand, and the Commerce Department's report on second-quarter GDP, which many are expecting will show an expansion of only 1% annualized rate, compared to a 1.8% for the first quarter.
On Friday, the Labor Department will release non farm payroll numbers for July, which will give investors a look at the state of the U.S. jobs market and an idea of oil demand to follow.
Concern surrounding the U.S. economy are making many nervous about what demand might look like in the second half of this year.
WTI fell $1.47 to settle at $103.08/bbl today, while Brent only shed $0.54 to settle at$106.91/bbl. Bunker markets remained stable in the primary ports.