An attendant cleans the window of a car near a sign displaying the petrol station’s current fuel prices in yen in Tokyo August 24, 2015. Reuters/Thomas Peter
Oil fell below $49 a barrel on Monday after its biggest two-day rally in six years last week, pressured by a supply glut and renewed concern about a hard landing for China’s economy.
International benchmark Brent crude climbed 10 percent last week but was still heading for its fourth straight monthly decline and has risen in only two of the past 14 months.
At 1052 GMT, Brent LCOc1 was down $1.14 at $48.91 a barrel and U.S. crude CLc1, which had rallied 12 percent last week, dropped 81 cents to $44.41.
“Volatility was high last week, so now we’re seeing some retracement – $50 is proving to be a resistance level,” said Olivier Jakob, analyst at Petromatrix, referring to Brent. “It is still a market which is very well supplied.”
Volume is expected to be lower than normal on Monday because of a British public holiday.
Chinese equities fell sharply on Monday before recovering much of their losses ahead of a survey expected to point to further economic weakness.
China will release its official reading on August factory conditions on Tuesday, and economists polled by Reuters believe activity likely shrank at its fastest pace in three years.
Excess supply is weighing on oil. The Organization of the Petroleum Exporting Countries, which used to adjust its own supply to keep crude…