The oil prices started decreasing after opening of trading on the Chinese stock exchanges. The Shanghai Composite slumped below psychological threshold of 3000 points in the first minutes after the opening. The index continued declining after a minor pullback having dropped 1.24 percent by 6 a.m. Moscow time. In turn, Brent price have plummeted to $31.09 by that time.
The Shanghai Composite began growing later. The bids coaxed back on a positive track having reached the mark of 3027 points (+ 0.35 percent) as of 8:30 a.m. Moscow time. However, the oil prices continued declining: Brent price decreased to $30.83 at 8:31 a.m. Moscow time.
"It is hard to pick a bottom [for oil price] right now because the fundamental is so weak. The erratic actions by the Chinese government to manipulate the yuan is sending jitters that the government is unsure what direction their forex policy should be," said Vyanne Lai, an analyst at National Australia Bank, Censor.NET reports citing The Wall Street Journal.