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Oil is slipping

Stefano PozzebonFeb 4, 2015, 16:32 IST

Oil prices are sliding early Wednesday, putting the brakes on a positive rally it had between Friday and Tuesday.

At 10:30 a.m. GMT (5:30 a.m. EST), Brent was trading at $56.57 a barrel, down 2.32% from Tuesday night.

WTI Crude was doing even worse, trading at $51.31 a barrel and losing 3.36% from its previous value.

Oil prices collapsed in the first weeks of 2015, before coming back last week. On Friday, Brent surged by 8%, the biggest one-day gain since 2009.

This morning, both oil indexes are back on a negative path.

Here's a one-week chart:

Investing.com

Reuters wrote that the rally in the last few days was driven by hopes that prices may have hit a bottom after the last seven months had seen oil losing half of its value.

Yesterday, British oil giant BP announced it will cut capital expenditures by $20 billion as the fall in the price of oil slashed profits in the last quarter of 2014.