Oil rigs in the Permian Basin of Texas are still being built even at $45 oil, defying shale sceptics
by Ambrose Evans-Pritchard
Oil prices have tumbled to a three-month low as surging supply once again exposes the chronic global glut and threatens to perpetuate the energy slump for another year.
US crude contracts crashed through key technical barriers to $42.40 on Tuesday before recovering slightly in late trading on profit-taking. They have fallen by 9pc over the last four sessions.
Speculators have given it an extra push. Data from the Commodity Futures Trading Commission in the US shows that 52 hedge funds have taken out large short positions, betting that the summer sell-off still has a further leg to run.