(Aug 22 Reuters) Oil prices fell on Monday as analysts doubted upcoming producer talks would rein in oversupply, saying that Brent would likely fall back below $50 a barrel as August's more than 20-percent crude rally looks overblown.
Soaring exports of refined products from China also pressured prices, as this was seen as the latest indicator of an ongoing global fuel glut, traders said.
China's July exports of diesel and gasoline soared by 181.8 and 145.2 percent respectively compared with the same month last year, to 1.53 million tonnes and 970,000 tonnes each, putting pressure on refined product margins DUB-SIN-REF.
Brent crude futures LCOc1 were trading at $49.93 per barrel at 0641 GMT (0241 ET), down 95 cents, or 1.87 percent.
U.S. West Texas Intermediate (WTI) crude Clc1 was down 84 cents, or 1.73 percent, at $47.68 a barrel.
Analysts cast doubt on an August price rally, saying much of it was a result of short-covering and anticipation of upcoming producer talks to discuss means to curb oversupply.
"Positioning data seems to confirm our view that the latest oil bounce is more technical and positioning-oriented than fundamental. In fact, new buyers have been mostly absent in the past few months," Morgan Stanley said.
Regarding the upcoming producer talks, the bank said an agreement was "highly unlikely' and that there were 'too many headwinds and logistical challenges to a meaningful deal."
Click on the link below to see the full story from Reuters: (by Henning Gloystein)