Oil tumbles after brief rebound; Brent back below $60

NEW YORK, (Reuters) – Global crude oil prices slumped anew yesterrday, a day after a short-covering rally, as traders placed fresh bets the market would resume a six-month rout on worries about a supply glut.

Benchmark Brent and U.S. crude tumbled $2 a barrel each in late trading after initially extending Wednesday’s short-covering, which lifted oil prices by more than $3.

With Brent back below the psychologically-key level of $60 a barrel and U.S. crude under $55, traders braced for more selling in a market that has lost about half its value since June. “We’re continuing to search for a bottom and might even see another significant drop before the year-end,” said Gene McGillian, an analyst at Tradition Energy in Stamford, Connecticut.

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