Bearish Asia drags on crude oil prices

NEW YORK, Aug. 18 (UPI) -- Concerns about the health of the Asian economy ushered in another down day for crude oil prices, with key indices drifting toward new market lows Tuesday.

Brent crude oil prices pulled further away from the $50 per barrel threshold Tuesday, losing a small fraction of one percent in early trading to $48.55. West Texas Intermediate, the U.S. benchmark for crude oil prices, was relatively flat, but testing a new yearly low at $41.86 per barrel.

Markets suffered Monday after the Japanese economy showed signs of weakness after reporting momentum in early 2015. Japan in February exited two quarters of consecutive downturn, but reported the economy declined at an annualized rate of 1.6 percent from April to June.

Crude oil prices are trading well below last year's levels around $100 per barrel because of oversupply and weak demand. Prices started a substantial downward trajectory in November when the Organization of Petroleum Exporting Countries said it needed to keep production static in part to satisfy expected demand from Asia.

OPEC said the rally in oil prices during the first half of the year was fueled largely by strong economic data out of Asia.

July declines in crude oil prices were fueled by near-consecutive crashes on the Shanghai Composite Index. In one of its worst sessions ever, the Shanghai closed Tuesday down 6.15 percent. The People's Bank of China, in what was the largest single-cash cash injection of its kind, pumped $18 billion into markets in an effort to reverse the momentum

China devalued its currency last week in an effort to prop up the economy. The official Xinhua News Agency said concerns remain, however, about the durability of Chinese rescue efforts.